NorthWest Biotherapeutics Inc (NWBO)

[Chiugray]

Sage, I agree with your general sentiment, but there is one thing missing in your equation on the squeeze part. I want to add that existing short positions means the ammunition has already been spent.

What is more powerful, a “wolf pack” of Shorts already holding massive underwater positions (mark-to-market liabilities), or the many brokerages that will force them all to cover at once?

Why? Multiplier effect. Mark-to-market (MTM) liabilities have a multiplier effect. When positions are highly leveraged (especially naked shorts & synthetic short contracts), a 5% collateral means a 20X multiplier effect on price. As MTM losses mount, the pressure to cover becomes an automated loop.

Add Gamma. Gamma is an accelerating, price acceleration effect. When volume spikes, the “days to cover” collapses. This creates a feedback loop accelerating the forcing of market makers to hedge and cover.

After a few days, the brokerages (acting to protect their own balance sheet from the “other side”) will trigger forced liquidations. They will buy NWBO shares on the open market to close out the risk, regardless of price. The Short/MM will simply be charged the bill, automatically.

Whether it’s small scale or large scale, the mechanics are the same. But with large levels of Shorts and especially the synthetic shorts (IMO very likely), that multiplier will turn a mark-to-market liability into a giant financial explosion for them.