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The shorts are why the stock got to where it is in the first place. It was around $40 when there was a huge short squeeze, and that popped the price of the sto
by soperj 8y ago
The shorts are why the stock got to where it is in the first place. It was around $40 when there was a huge short squeeze, and that popped the price of the stock to like $180.
- AnthonyMouse 8y agoA short squeeze is a temporary phenomenon. Short sellers expect the company to do worse than it does, they turn out to be wrong and then many try to buy the stock and close their positions at once before the stock goes even higher (and so that they can stop paying interest), which requires them to buy the stock for a premium from people who aren't particularly inclined to sell it just then. That only lasts as long as the lack of liquidity, which can be a little while but the events you're referring to were six years ago.