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Maybe. Part of the problem currently, is there are too many short positions compared to the total issued shares. It’s what makes this a short squeeze. If you tr
by milesvp 6y ago
Maybe. Part of the problem currently, is there are too many short positions compared to the total issued shares. It’s what makes this a short squeeze. If you try to short now you’ll help elleviate the squeeze, though you may have problems finding people to lend the stock to short. But what makes shorting even scarier right now is the price is based on the marginal willingness to sell right now, vs the marginal willingness to buy + the forced buying due to margin calls. There is a major assymmetry that is driving the stock to positive infinity. And while we both know the price can’t go to infinity, we can’t be sure that a short right now won’t have it’s margin called due to all the margin calls before triggering a margin call on the stock just shorted. So risk is very real for a short at the moment, and you need a lot of cash reserves to try to weather the current situation.