Investors are too long this stock, says Cramer

A day after 3D Systems announced plans to offer 5.95 million shares of its common stock in an underwritten public offering, the 3-D printing company saw shares fall sharply Wednesday morning.

Adam Jeffery | CNBC

"The print did not hold. Why did it not hold? Because there's a gigantic short position in 3D and this loosens the short," Jim Cramer said on "Squawk on the Street." "When you break print, it means that the squeeze is being broken, OK? And they're going to do it for acquisitions. ... The public is way too long 3D Systems."

Between interest in 3-D printing and a lack of competition in the space, Cramer said the industry seems likely to "take over the world." But he told investors to avoid becoming overly bullish on any one company, especially given the shorts on the prowl.

When it comes to 3-D printing, Cramer prefers Stratasys.

—By CNBC's Drew Sandholm.

Disclosure: When this story was published, Cramer's charitable trust did not own 3D Systems or Stratasys.