RE: Shorting ... general question17 Mar 2023 10:28
Thats the way I see it as well, but not a hugely seasoned investor, so dont know for sure.
We've seen 400k shares dump this 7-8-9p, so once they have to bu ythem back, as you said, on low volumes it will shoot up. Unless they are all colluding, it seems like a game of chicken, make some decent cash, but buy them all back before the other 2 so you dont get caught out.
I believe thats what happened to GME and the like, the shorters rushed to close their positions, but tonnes of people weren't selling or had their sell price set to something stupidly high. The shorters had no choice but to buy them all back at these high prices as the liquidity was so small that it caused a squeeze
again, just what i've read/learned, dont know for sure.