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This means that Burberry is the fifth most shorted company in the FTSE 100 according to figures from Markit.
Rival firm Nokia, also struggling to regain lost ground in the handset wars, is the second most shorted phone maker with 20% of its shares on loan.
As we said only last week, there is a possibility that the most shorted stock in the market will then become the most squeezed.
Home Retail is the sixth most shorted company in the FTSE 250 with 9.6% of its shares out on loan before Tuesday, according to data provider Markit.
The construction services firm, the most shorted stock on the LSE with almost 18 per cent of its shares out on loan to investors betting on a fall, defied the cynics with a reassuring update and £1bn in new contracts.
Retail groups make up six of the most shorted 20 shares in the FTSE all-share index, it emerged today as figures suggested slowing retail sales growth and increasing price pressures.
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Olam's chief executive, Sunny Verghese, hosted a conference call with investors and the news media, saying the company was one of the most-shorted stocks in Singapore and accusing Muddy Waters of "spreading these baseless assertions and trying to spook the market so that they can profit from their short position".
However, 14 of the 20 most-shorted ETFs on State Street's list also ranked highest in total value of reported settlement fails across all equity securities for 2011, according to data published by the SEC.
State Street said its analysis of SPDR S&P Retail and 19 other most-shorted ETFs, including popular names like SPY, IWM and QQQ, found that high levels of short sales did not affect the ETFs' ability to track their corresponding index.
Ashtead is one of the most heavily shorted stocks on the FTSE 100, with 7.5 per cent of its shares out on loan to investors betting on the price falling.
The group, which is taking advantage of Britain's ageing population, said it was on track to build 3,000 homes a year The Week Ahead Ashtead is one of the most heavily shorted stocks on the FTSE 100.
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