Aviation Stocks Surge 9% After Short Seller Attack, Market Cap Increases by $3.6 Billion

FTAI Aviation Ltd. (NASDAQ: FTAI) closed at $263 on the Nasdaq on July 7, up 9.12% from the prior session—about KRW 350,000. Trading volume was roughly 1.23 million shares, and market capitalization jumped by approximately $2.7 billion (around KRW 3.6 trillion) in a single day to about $26.97 billion.

The company recently warned of a potential delay in filing its annual report after allegations concerning accounting and corporate governance, and has engaged an independent advisor to review the issues. This move is widely interpreted as an effort to manage heightened regulatory and legal risks arising from Muddy Waters Research’s short-seller report and subsequent investor lawsuits.

FTAI Aviation is a U.S.-based operator of commercial aircraft engine assets, specializing in the acquisition, overhaul and leasing of CFM56 and V2500 series engines to airlines and lessors. In 2024, it brought its operations in-house by ending an external asset-management structure. However, since 2025—amid ongoing short-seller reports and class-action suits—it remains a stock characterized both as a high-growth engine-services play and as a company exposed to accounting risk.