How would the people who supposedly shorted 15.5 million SSPT shares yesterday at $.0001 expect to cover those shares to make a profit?
They'd have to be able to buy 15.5 million shares at below $.0001.
From what I understand, $.0001 used to be the lowest a stock could go, but it seems I have seen at least one stock sell as low as $.00005. However, can stocks that drop below $.0001 be bought at that level, which would be necessary to allow a shorter at $.0001 to cover for a profit? It doesn't seem likely.
IMO, it doesn't make sense to short a stock at $.0001 unless you believe the company is imminently going to go out of business (or will otherwise cease trading) and covering wouldn't be necessary. That doesn't seem to be the case here.
Is it possible that FINRA's tracking system is picking up new shares being dumped on the market through continued dilution and reporting them as short sales?
