I think what they meant by the 140% that the outstanding short volume was 40% bigger than the existing number of shares. Not the daily volume. That is also physically impossible, unless they used some kind of leverage.
Melvin Capital sells out of GameStop
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I think what they meant by the 140% that the outstanding short volume was 40% bigger than the existing number of shares. Not the daily volume. That is also physically impossible, unless they used some kind of leverage.
I am talking about the shares out. That's just how the mechanism works, just like money supply multiplier.
If we keep reselling and rebuying then our overall position doesn't grow, just fluctuates.
What the hell you are talking about. Just open a spreadsheet and fake a few short trades and see how the short shares vs total shares out. Interests only reverse when shorts cover from real long holders.
OK, I think I finally got it. Took a while....
Although:
"Theoretically, the maximum amount of a company's float that could be shorted is equal to the float itself; although, in reality, it's rare for a stock to have a short interest greater than 50%."
https://www.investopedia.com/ask/answers/05/shortexceed50.asp#:~:text=Theoretically, the maximum amount of,short interest greater than 50%.
In this list of currently most shorted stocks, only GME is over 100%:
https://www.barrons.com/articles/an...e-next-10-most-shorted-small-caps-51611688092
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lol, what? why would a firm caught in one of the biggest squeezes ever cover their short? is this a sarcastic response?
love the title of this thread. someone teach me how to "sell" out of a short.
Obviously management at Melvin Capital are complete idiots. It's a valid question if operators like that should be allowed to remain in business. Obviously without huge infusions of cash they would be out of business.
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