** Gulf Keystone Petroleum rises 32 pct, takingtwo-day gains to 128 pct as a major restructure of the businesscontinues
** Distressed debt funds set for large stakes in the Iraqioil producer once a debt-for-equity swap completes
** Multiple traders cite a large short squeeze for the moveon Monday and Tuesday
** Debt funds holding convertible bonds likely to be shortstock to hedge against a deal falling through, and will need toclose positions before the restructure completes
** Sothic Capital, understood to become a major shareholderif the restructuring completes, has been short the company'sstock though 2016, though dropped below the 0.5 pct disclosurelimit in May, according to FCA filings
** CapeView Capital the last hedge fund with a disclosedshort at 0.78 pct
** Traders also cite Sunday Times report the company may besubject to a takeover bid once the restructuring is complete(Link: http://bit.ly/2a8suG9) as drawing in retail investors(stock the most active on a number of retail investmentplatforms on Tuesday)
** Investment managers TD, Hargreaves Lansdown and BarclaysWealth all in top 5 shareholders, suggesting a large amount of retail money in the stock