Oh and I forgot to add that more than 10% of stocks are still being shorted. Their average price was around $1.50 to $2.50, betting on the company’s collapse because of the whole CEO drama and selling of stocks. But the destabilizing of the world, and governance rules that was imposed on DRO preventing the same sell of drama again, and new contracts coming in, the stock started going up again.
But the thing is, between 6 to 8 March, the shorters started understanding they were being slaughtered. That’s why you saw JPM forced to take over 2 million shares as they hit margin calls.
However, the rest of the shorts will not let this die off easily, so they shorted a new series of shares to try to drive the rally down. But as mentioned in my previous post, the previous shorts failed. During intraday trading on 8th Jan, they pushed the price down from $3.90 to $3.60, almost forcing stop losses on retail traders to push the stock down.
Unfortunately for them, they failed, and the stock closed above $4. This is very dangerous for the shorters given the game they are playing.
Now coming back to the point, shorters still have more than 10% at an average price between $1.50 to $2.50. Margin calls are already starting to hit some of them, and some are already sitting at more than 100% loss. This is going to be very ugly soon, in my personal opinion.
