It means the short squeeze is starting....
The MMs/Brokers were unable to deliver the amount of shares they allowed to be shorted....
I believe they have 13 days to try to cover the shorts.... and if they can't they are then forced to cover at the market price..
The FLOAT is much smaller than we thought.. IMO
edit: I believe the MM/Broker who has the fail to deliver is prohibited from shorting any further during the enforcement of Reg SHO, rule 204, etc.
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Short sales.
A broker or dealer may not accept a short sale order in an equity security from another person, or effect a short sale in an equity security for its own account, unless the broker or dealer has:
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If a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in a threshold security for thirteen consecutive settlement days, the participant shall immediately thereafter close out the fail to deliver position by purchasing securities of like kind and quantity:
Kitty' Kitty'
