RushNet Inc (RSHN)

[Doordietrying2016]

Covering is when they buy back the shares with the money they got from selling the shares. Covering generally pushes the price up. Here's how a naked short works.

1. A$$ hole goes to a$$ hole bank with 0 funds and asks to borrow your shares that you paid for, for free. A$$ hole banks says yes.

2.A$$ hole sells your shares at the bid driving the price down. Ie. From 1$ (which is the effect price he "paid for them". Down the price goes from 1$ down to .75. then people panick. Scammers go online and scream dilution on chat rooms and MMs cross trade down. .65.... .55. full panick. Now. Everyone has lost enough value.

3. A$$ hole "covers" and now uses the funds he got from selling all the shares and buys them all back at .55. that means he sold between .75 and 1.00. now he buys back between .55 and .70. he pays much less for them than he sold them.

4. He gives you your shares back and pockets the difference. You lose money, he walks away with cash, having spent 0 money and invested no time other than scamming.