
Wednesday, June 25, 2025 7:50:31 AM
That’s because naked short sellers can effectively print an unlimited number of shares, flooding the market with artificial supply that overwhelms any real demand.
But here’s the catch—they could’ve always done this. So why didn’t they?
Two reasons:
1. Risk: Every synthetic share they sell increases their short position. The deeper they go, the bigger the risk if they get squeezed.
2. Psychology: They prefer to milk the herd by giving the illusion of hope—occasional green days, slight runs—just enough to keep longs believing. But the share price never breaches their margin danger zone. It’s all controlled.
Now, with a preferred share dividend possibly on the horizon—a move that exposes naked shorts—they’re panicking. That’s why the sudden push to $.0001. It’s a scare tactic. They’re hoping to stampede weak hands into selling for tax losses or despair.
But here’s what they don’t understand:
Some of us hunt shorts the same way shorts hunt retail.
We’re not spooked. We’re patient.
And this is exactly what we’ve been waiting for.
Krombacher
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