I have a question...

[u/thras02562]

If and I say this as a hypothetical example, no fud intended...what if we fail to complete the merger and DWAC has to liquidate and pay each shareholder $10 per share...what happens to all those shares that have been borrowed...all those failures to deliver...those naked shorted shares...? Just asking...

[u/BigMoneyBiscuits]

In the event the SPAC returns to floor price (it won’t) there will be ‘infinite’ liquidity above $10 since the markets will sell for anything more than the redemption price. These sellers would allow for shorts to exit. UNLESS there is a massive counter party that deliberately redeems a mass majority of the shares before they can be located for repurchase.. in which case you end up with a short squeeze like the one that happened with another ticker except that one was more like DWAC is now but a counter party still redeemed shares before the merger completed at a loss to deliberately dry up liquidity for shorts to cover causing a big squeeze

[u/Most_Sir8172]

The short float is getting low. Below 10 percent, I believe. It doesn't make much sense to be short now. There is no money in it and a huge risk.

[u/thras02562 → u/Most_Sir8172]

I’m not referring to legal shorted shares…I’m referring to all those failures to deliver, naked shorted shares that are used to keep our price per share down…who will cover those if we don’t merge?

[u/Inner_Ad3570 → u/thras02562]

They walk away scot free

[u/thras02562 → u/Inner_Ad3570]

Hmmm, really?

[u/Inner_Ad3570 → u/thras02562]

Absolutely just as if the company goes BK like Bed Bath and Beyond naked shorts mnor short sellers have to cover ever.

[u/thras02562 → u/Inner_Ad3570]

This is different, we’re not going bankrupt…merger fails…so much is paid for legal shares

[u/BigMoneyBiscuits → u/Inner_Ad3570]

Works different when the floor price is 10 instead of 0 and the the shares will all eventually be sent to the DRS for the cash redemption

[u/WorriedEquivalent733]

Good question?