Quote from GG1972:
if you use stops )mental or hard) what does it matter whether a particular stock is heavily short or not unless that specifically plays into your strategy or your strategy is based on that.
Most short float info is month old.
Heavily shorted stocks have a higher chance of being squeezed, it is something to take into account for your money management.
Most heavily shorted stocks stay that way for quite some time (people looking for the next Enron (greed))
Take a look at TSLA and tell me what that move from 21 to 30 is?

What I want to say is that overcrowded trades should be taken with even more caution (less size) than usual imo