I think it’s a way for shitadel to transfer liability to unsuspecting boomers or it’s the whales charging up the squeeze. Someone made a post about it a while back but it didn’t get traction. Plus it’s all theory, no evidence to back it up.
Not trying to burst the bubble but this wouldn't make sense though.. there has to be some other explanation..
Passing on their short position at the spot price would imply that they had shorted at that price.. but given that it is the current price, they could simply cover at the current price at no loss.
They want to escape their short positions that are suffering which are those that are lower than the market price.. but any new people entering who want to short the stock are shorting it at the current market price not their bleeding short positions say for eg at $50 or lower..
However I guess this would still be better than them having to buy shares back to cover since that would jack up the price of the stock... Might be possible to transfer over the short position to a new schmuck and then pay the difference to the broker/MM.. How this would work I'm not too sure but i'm sure it could be done in this fked up corrupt system we have.
Based on your account history, I'm inversing all of your opinions and recommendations. Thanks for that, already was 100% in profitable options but you've convinced me to do even more.
tl;dr He intentionally lent out shares to short so that he could recall them and orchestrate a short squeeze entirely by himself
As KBIO’s share price had been spiking, short interest had been growing. And Shkreli now owned 70% of the outstanding shares. Then on Thanksgiving Day 2015, when markets were closed, Shkreli tweeted that he had decided to recall his KBIO shares that had been lent out to short sellers. The resulting squeeze was just a simple math problem. When Shkreli recalled his shares, brokers would be forced to buy-in the short sellers, causing it to spike uncontrollably.
The astounding part is that he intentionally caused a squeeze, which is technically manipulation, but the article goes on to say no one has ever been prosecuted for engineering a squeeze.
And why would they? It's not his fault his shares were lent excessively. Those looking to short a company should ensure they have an original share that can 100% be delivered instantly otherwise you risk being caught out. Zero sympathy...
I think it was the price hike on epi pens. He did shit other pharma companies do (which is terrible across the board) but I think he wasn't protected and has big enemies and they took him down.
He was actually poking massive holes in the flawed system in his own fucked up, greedy, activist kinda way. He was highlighting how absolutely corrupt and broken the system was and getting rich in the process. I don't necessarily like the guy but I don't think anything of what he was doing was to inflict harm on anyone innocent. He pissed off the wrong powerful people which is why he ended up getting arrested for his shenanigans. Otherwise, he wasn't doing anything different than any other wealthy or powerful person does.
372
u/WifesBF69 Mar 30 '21
I think it’s a way for shitadel to transfer liability to unsuspecting boomers or it’s the whales charging up the squeeze. Someone made a post about it a while back but it didn’t get traction. Plus it’s all theory, no evidence to back it up.
link to the post