Red Cat Holdings, Inc. (RCAT) saw a significant price increase on January 6, 2025, closing at $14.19, up 7.5% from the previous close of $13.20. The stock opened at $13.35 and reached a high of $15.27 during the day, with trading volume surging to 16,255,951 shares, more than double the average. The price movement was largely driven by a sharp 32.82% increase in the borrow rate, indicating heightened interest from short sellers, which often leads to increased volatility. Additionally, Red Cat's recent success in securing a major U.S. Army contract for the Short-Range Reconnaissance Program of Record has bolstered investor confidence. This contract requires Red Cat to produce nearly 1,200 drones annually, aiming for $100 million in revenue for 2025, significantly boosting its growth prospects.