Mr Cooper Group Inc (COOP)

[grandetourismo]

The end of a stocks life guarantees among other things that shorts wont have to cover. A stock can be halted for example during the announcement of substantial material events that would dramatically affect the company and hence the pps or for example a stock could be cancelled for financial failure or BK in which the judge cancels the stock.

IMO, What you will find with pink sheet shorts more often then blue chip stock shorters is that certain financiers prey on small start-ups pink sheet companies that are strapped for cash. The nefarious financier will give the start up money in exchange for shares in which the financier pumps then shorts and dumps. The objective here in Pink Sheets though is to drive the startup out of business and into bk where they never have to cover.

I believe the above happens in pinks because Pink Sheets is not even an exchange thereby it is not regulated in the same manner the OTC and above markets are. Pink Sheets is simply a clearing house for financiers to sell their paper and that is why there are so many bagholders in Pink Sheets.

In Wamu's case however, I don't realistically think the shorts will be able to crush and drive WaMu into BK. WaMu is in fact emerging from BK so the shorts will have to pay up. Which is why IMO they have been relentlessly trying to hold it down while they gradually cover.