Bed Bath & Beyond Inc (fka BBBYQ)

[Prudent Capitalist]

LMAO! They do not have to. In bankruptcies, when the shares are cancelled and extinguished, shorts do not owe anything to anyone. They pocket the 100% gain on their short sale. The facts have been posted here many times since the BK filing, and it is a well settled fact. I will post what was posted this am again:

According to Investopedia1, when a company declares bankruptcy, its shares are usually delisted from the exchange and become worthless. In this case, a short seller who did not buy back the stock before trading stopped would never have to pay back anyone, as the shares are no longer available. This is the best possible scenario for a short seller, as they get to keep all the money they received from selling the borrowed shares. However, this process may take some time, as the broker may have to wait until the company is liquidated to declare a total loss on the loaned stock.

Shorts can not close right now. You know this already