Innovation Pharmaceuticals Inc (IPIX)

[Brinjal]

The very few shorts still around

There may be very few shorts around, but those few combined may be holding a large short position. Do I have evidence to make this assertion? Absolutely, not. But then I don't need to. As an analogy, I posit the black hole inference based on Schwarzschild's equation. No one can image or view a black hole directly. The only way one can observe it is by seeing how gas and matter behave across a small portion of the sky, that can only be explained by an object of immense gravitational pull. So when you say, and I quote "who wouldn't crystallise a short position when a stock has plumbed the depths of pennystockdom as IPIX has?", I could turn around and ask you the same question, "why is there a need to encourage people to sell at these depths?".

“When you have eliminated all which is impossible, then whatever remains, however improbable, must be the truth.” ~ Arthur Conan Doyle, The Case-Book of Sherlock Holmes.

I don't think the worry here is for "those poor souls who will have to explain to their nearest and dearest why they blew the family savings and kids' college funds". It's for those who sold that which they did not possess, but did not see enough selling to cover their short positions. For the longs, the maximum they lose is only what they invested, for the shorts the losses are theoretically infinite. And I can sense the palpable fear.