RE: HUGE short squeeze imminent28 Aug 2020 21:06
I think the 9.09% refers to the fact that 9.09% of the 1.373 billion shares have currently been borrowed from holders for the purpose of short selling. If you think the price is going to drop, you basically borrow the share from a holder, sell it to someone else, wait for the price to drop, then buy it back and return it to the holder. Crazy yes.
The big problem that our esteemed colleague laidback refers to however is when the price unexpectedly rises and short sellers get caught napping. They've borrowed a share to sell it and now have to pay a higher price to buy it back and return to the holder. If the price starts rising rapidly then shorts have to quickly close their positions to avoid further losses. This results in increased demand for the stock and the fabled short squeeze.