5 ms·

Is he wrong?

• dgacmu 4y ago
  He could be attempting to create a problem so he can take advantage of it.
  • borski 4y ago
    Entirely possible he shorted SVB.
    • antihipocrat 4y ago
      If the company goes into liquidation before the short seller closes their position, what happens?
      • dgacmu 4y ago
        You win but you may get stuck paying the borrow costs still for a while until either the stock is tradable or whatever happens with the resolution of the bankruptcy settles out (the residual shares potentially have _some_ value). In practice, before that, your broker or whomever you borrowed the shares from will probably just declare it a loss and close it out. They'll then get a little something from the bankruptcy, maybe. That's assuming a traditional short, and not something like selling naked calls. In the latter case they just expire worthless.