Steve, If you sell 100,000 shares of "air" for $0.69 you get $69,000
If you sell 100,000 shares of "air" for $3.69 you get $369,000
That's how a "short" makes more money if the price of the target rises. Shorts want to get paid MORE for their phony shares, not less. This is simple economics.
In the above example, that's more than 5x more money for the same number of phony shares. The limiting factor is the number of shares - you can sell 100,000 shares here and there. You can't sell, say 1,000,000 shares here and there.
The shorts were getting paid only $69K per 100,000 phony shares and the price was dropping fast. The shorts were in dire straights and in need of capital for funding of their operations. The shorts were "screaming" in pain when we all stopped buying their fake shares. The shorts were a month or two from being broken, destroyed, bankrupt.
Unfortunately the shorts saw their salvation come as hundreds of thousands of shares were suddenly purchased retail at ever increasing prices. You saw no disparaging posts by the agents of the shorts during that period as they, relieved, went laughing all the way to the bank.
Colin |
