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Thursday, May 27, 2021 12:08:59 PM
Covering a short is "the act of buying shares to close the short position". When you buy shares under pressure you tend to pay more depending where the ask price is at. This pressure causes the short squeeze to occur. If there is no pressure to buy shares there is no share price increase and no squeeze. Its as simple as that. If we hold synthetic shares and we do not sell them for cash, we are not causing any share price impact. Even if there are 5 times sythetic shares then the float level. If people do not sell them or buy them there is no share price movement. Assuming other normal share trades have coasted.
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