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There is a lot of assumptions there. You're assuming the short sellers must cover their shorts at the highest possible price instead of, you know, waiting a day
by mike00632 6y ago
There is a lot of assumptions there. You're assuming the short sellers must cover their shorts at the highest possible price instead of, you know, waiting a day or two. You're also assuming that GameStop doesn't issue any new stock which is already not the case for AMC.
- myownpetard 6y agoI'm not assuming anything, I'm just asserting that it's a rational strategy that has a possibility of succeeding. Can the short sellers stay solvent long enough to wait for the price to drop? Short squeezes can last for weeks. The answer is already no, at least some of them cannot, e.g. Melvin Capital