Cytodyn Inc (CYDY)

[gestalt2]

I have to wonder, given where this company is at, how does anyone short this? I'm not saying that it is guaranteed to go up or that I know when. The question is how much lower can the stock go to make shorting worth the risk? If there is 100 million short positions and the stock goes down $.10, they make a total of 10 million across all the individuals shorting. I'm not saying this is a small a mount but if the stock goes to $1, they are down $100 million and forced to close with margin calls. Even if I knew with great certainty the stock is going lower - I would never risk this! I think this shorting must be some part of an algorithm and no thought to the investment is even considered. It could also be part of a hedge against a long position. The really scary thing is, If the stock does move substantially higher, there may not be enough stock available for sale. I would think the brokerages would trigger a short covering very quickly because of this. We assume closing these short positions is easy - It may be a very big liquidity problem and the losses would be massive.