At this point, the stock was poised for dramatic volatility. It wasn't the number of short-seller bets that made the stock prone to sudden price swings but a decline in trading volume. Either way, the short ratio was on the rise.
Sure enough, Netflix's stock chart turned volatile over the next two years. There could have been a bearish move, but the actual bull run that followed also made sense. Trading volume doubled, Netflix's stock price rose by 116%, and the short interest fell to all-time lows. By the end of 2018, the market could cover all of Netflix's short sales with the average trading volume in 1.1 market days. The overheated short ratio had cooled down.
The actual market moves were based on Netflix's fantastic subscriber growth in those years, of course. Above all else, the company released blockbuster shows such as Stranger Things, Money Heist, and Narcos during the two years. These hits were never meant to manipulate any specific stock market metric, and certainly not the short ratio, but they sure boosted Netflix's trading volume and lowered the skeptics' short-selling investments. A lower short ratio simply followed from these business-driven trends.
This metric is a measuring stick, not a steering rod. But when the short ratio soared, a volatile period looked likely to follow. Netflix delivered on that promise.