skyrocketinsight
10 hours ago
Time for a massive squeeze! Outch, those MM's 'COULD BE HURTING SHORTLY'
Here is to unlimited losses for OUR DEARLY BELOVED MM's!
Yes, shorting can backfire on short sellers, particularly during a short squeeze. When a stock price rises unexpectedly, short sellers are forced to buy shares back at a higher price to cover their positions, resulting in losses. These losses can be unlimited if the stock continues to rise.
Here's a more detailed explanation:
How short selling works:
A short seller borrows shares, sells them with the expectation that the price will fall, and then buys them back at a lower price to return them. The profit is the difference between the selling and buying price.
The risk of a short squeeze:
If the stock price rises instead of falling, the short seller needs to buy the shares back at a higher price, which results in a loss. This loss can be unlimited, as the stock price could keep rising.
Short squeeze and its impact:
A short squeeze occurs when a large number of short sellers are forced to buy shares back simultaneously to close their positions, often due to unexpected positive news or a surge in buying pressure. This can lead to a rapid increase in the stock price, further exacerbating losses for the short sellers.
Example:
During the dot-com bubble, shorting start-up companies could backfire if they were acquired at a price higher than the short seller's selling price, according to Wikipedia.
Short selling can also have broader implications:
Excessive short selling activity can depress the market value of a company's shares and make it harder for the company to raise capital, potentially hindering its growth and development, according to the SEC.
How Does Short Selling Help the Market and Investors? - Investopedia
Nov 20, 2023 — The main risk is that instead of declining, the stock price rises significantly, forcing the short seller to buy the s...
Investopedia
Short Selling: The Risks and Rewards - Charles Schwab
Mar 11, 2024 — Losses for short-sellers can be particularly heavy during a short-squeeze, which is when a heavily shorted stock unexp...
Charles Schwab
Short (finance) - Wikipedia
The short seller borrows shares and immediately sells them. ... During the dot-com bubble, shorting a start-up company could backf...
Wikipedia
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money-maker
11 hours ago
OTC Top 3 most-shorted Stocks (based on Shorted Share Volume not Dollar Value): $TMSH 233,817,702 shares | $KGKG 228,789,829 shares | $VGTL 165,214,690 shares | 2025-04-17 https://t.co/Dr9ZWogHlA— LiquidityNews (@LiquidityNews) April 18, 2025
Is that true? VGTL short 160 millions?