Possibly that stupid....or....I read an interesting post on YMB that made a simple, yet possibly very relevant point - Some hedge funds obviously have insanely deep pockets, leveraging billions, and aren't overly concerned with one failed short attempt, so long as some of their others hit. They may not be phased by committing $50 million to shorting CCME if they feel that there is a good chance that other bets will more than offset their CCME losses, should they lose.
Further, the longer they can draw this out with their seemingly endless resources, the more time they have to be right if the market does correct or whatever they are waiting for. Of course, the opposite is also true, that also means the more time for CCME to become more and more attractive to equally deep pockets on the long side.
This may not seem like a revelation to anyone else, but I guess I didn't think about the shorting possibly being the work of someone so large that they really aren't losing any sleep because this investment is just a drop in the bucket for them. I always pictured in my mind's eye some guy or group of people who were "all in" against us.
A large short may have just picket a convenient Chinese RTO to short and felt CCME, with it's too good to be true stigma, would work just fine for them...and it is nothing more than that.
