3 ms·
> Am I missing something? A few things. I'm not an expert, but: > They don't even need to buy up 100%. They only need to buy up 20%. Then they're back in the
by noodle 6y ago
> Am I missing something?
A few things. I'm not an expert, but:
> They don't even need to buy up 100%. They only need to buy up 20%. Then they're back in the situation of being under 100% shorted, and problem no longer applies.
They're still in a very tough position. Buying 20% will raise the cost of the stock further, since they're buying it at market price which would drive up the price. And raising the price makes maintaining the rest of their shorts more expensive. That's ultimately the goal - make and maintain a higher share price, which would force shorts to buy instead of continue to pay to maintain their position, which in and of itself would make the stock price grow.
This is also why /r/wsb is interested in other large but not greater than 100% short interest stocks. They might not get squeezed as much as GME but the pressure would still result in a similar situation with lesser gains.
This becomes much less possible as the short interest shrinks or the lower impact you have on the share price.