MediaG3 (MDGC)

[thelimeyone]

It depends, they could go completely silly & continue to short more. To MM's all pinkies are a piece of crap & can short forever unless it becomes dangerous to do so. It becomes dangerous when they finally realize the Co is not a piece of crap & hey we better start covering before getting caught in a short squeeze. However they have so many options in their "trick bag" they can usually cover pretty cheaply so they are not worried. One of those tricks is for MM's to swap shares to bring the price down artificially induce a bit of panic & mop up all those retail shares that were pried loose.
We definitely lost some retail (see the chart) so they may already be in cover mode, but it's not an easy thing to say for sure. However if you are long be assured the games will decrease rapidly at some point & we will get our true value reflected in our share price. Just a waiting game really.

Of course the long strategy only works if you pick the right Co to begin with, if they have weak management or cannot get revenues or source non toxic financing the MM's will anhilate you. That's why DD initially is so important to pick the right Co (as is the case with MDGC) then you can win in Pinkieland. The main thing is not to get sucked in to any panic moves & ride out or take advantage of any storms & play the MM's at their own game, so it's handy to keep dry powder available for such occasions. Averaging up or down atm should just be a consolidating move on your part as I am assuming you already have a sizeable position?
ps, when I talk about MM's they are mostly only the middle men (pun) acting on behalf of the real criminals, usually hedge funds or hedge fund arms of larger conglomerates. Lot's of people tell you it's a myth but I have studied it for 6 years & if you don't believe it then you have not researched it, or have your head in the sand or have an agenda. IMO.

tlo.