Wednesday, July 04, 2018 4:09:35 PM
Short squeezes occur due to unexpected events. Tesla, for example, several years ago revealed a great quarter when most investors thought the company would fail. Elon Musk in fact warned shorts, saying “There’s a tsunami of hurt for those holding a short position. It’s going to be very unpleasant. I advise people to exit while there is still time”. Many shorts obviously should have heeded Musk’s advice. Tesla is now multiples higher than it was back then.
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