LogFAQs > #950242090

ExThaNemesis posted...

But they have infinite money to play with and all of the institutions in their pocket. Retail can't afford to sit and throw money at a manipulated stock price forever.

The time is limited on the short side by the time it takes for the long shares to be concentrated in the "diamond hands" as they put it. As long as there are shares held by people like you or me who are willing to sell at a non-infiniti-squeeze price, the shorts can keep buying and selling. But it's possible that as this trading goes on, weak hands get shaken out and more and more of the float ends up being owned by the true believers.

As this happens we would expect volume to go down. In the extreme mathematical theoretical case, if 100% of the shares are in the hands of people who will only sell for absurdly high prices, one single market order to buy 1 share will send the price to the lowest ask on the price ladder, which would be somewhere between Mars and Jupiter, instantly putting the shorts into a margin call and forcing them to submit market orders to buy back all their shares.

It's a very interesting dynamic problem.

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