I maybe wrong on this ( could be an old Naked Short rule that doesn't really count these days )
Don't Shorts have to close their positions when a stock splits ?
They can take out new ones if they like after. Essentially they have sold stock that doesn't exist, so that needs to be made good.
Stock dividends from memory had similar issues... say Elon announced a dollar a share dividend, how could that be made good from those that are shorting .
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