first off , NO short ever "has to" cover, period. If any short position is upside down, whether it is a NS or a legit one, the shorter will either have to come up with more capital to maintain the short, or be bought in. The NSS are no different. If these PBLS guys arent lying through their collective false teeth, what we should hope for is the filing of their financials, followed by a significant gap up in price the morning after. Hopefully, the IR guys will have found enough "real money buyers" (not us goofballs here) to come in with real institutional buying, instead of the whining about naked shorters that Mike Sunshine.... ummm , I mean Mulshine does.
Another thing about naked shorts, they do not just get the money and run off. NO clearing firm would ever allow that. The only way the money gets handed out is if the position is covered, or if the company goes under, and the stock no longer trades, etc. The clearing firms allow the naked shorts if they are in a profit position, if the naked shorts get upside down , they either have to cover, or come up with more $, period. You can create counterfeit shares, you can even create like-cash assets, but no clearing firm is going to give me, or anyone else a few million bucks if I sell shares i cant deliver. they will keep your account credited, though, if you do enough business with them.
The only thing that can cause a real and lasting reversal in the stock is for these good ol' boys who appear to think they are above filing their financials to join the real world and file. They could announce a buy out of XOM and no one would care.
