MUST READ FOR EVERYONE:!!!!
But your point is well taken cause the risk and costs associated with retail traders like myself shorting this play isn't worth it(even though I can). So the only ones doing it are the MM's . And all need to understand that they aren't shorting cause they don't believe in the stock it's because when a stock price increases rapidly like we have here, they are fulfilling orders on shares they never actually had meaning they need to get them back at some point and they'd rather pay a cheaper price... An MM friend of mine explained this complicated process to me once and it makes great sense,. For example a trader from let's say a big broker like scotttrade puts in a large order for 1 million shares and the stock is at let's say a penny... Well because of rapidly increasing demand, when the MM goes to fill the order, it's now at .011 instead of 1. At that point, the MM has two choices, they can reject filling the order or they can fill it. Now, if they fill it, they have already lost cause the price they have promised is .01... If they don't fill it, the big broker will go to the next MM to get the order and so on... 99% of the time they fill it cause they don't want to lose the business and the MM's that come through get the return business over and over out of loyalty....30 seconds later a new order comes in at .012 and by the time the MM goes to the market the new price is .013 and the same situation with the same outcome repeats itself cause the MM doesn't want to lose the brokers business... Consequently, the MM is building up a larger and larger short position cause he is selling securities at a lower price than the market currently is... They will keep on doing this and compounding their losing position until the market finally cools of and they can force the price down with numerous tactics and additional short selling to recover their shares at a cheaper price .... THEY WILL NEVER COVER FOR A LOSS they will continue to add to short position till they win cause they have much more than any retail trader...this is how all runs work in the OTC works with rapidly increasing stocks;)
Hope this helps everyone!
Silk!
