That is one possible scenario, though I have no clue how that possibility stacks up probablistically to all that could possibly occur or how much more or less likely it is to occur versus other scenarios.
There are two assumptions that would need to be true for that scenario to have a chance of being realized. One is that 'investors will eventually begin selling'; I do not know this and I do not think any can know when and at what prices the 'investors' will 'begin' selling, maybe they never begin to sell at X price but begin to sell at Y price, who knows the future, nobody.
The other assumption is that NITE has all the time in the world to implement whatever tactic he can over a long time playing in the stock with all the necessary sells offs that you speak of which would be required for him to ever get back into sub penny ranges. I do not think NITE can just hold tight to those naked shorts (if you are talking about legit shorts then fine sure the expiry will happen later but I think we have already noted that legit shorts are not the issue here, the issue is the possible huge number of naked short sales assuming phony shares that do not exist which NITE will be forced to cover) because NITE must (because of the DTCC trade/trade) deliver real shares to cover those shorts by the time those shorts are to be settled which is usually a three day settlement period. All this time, the 'market' liquidity as you point out will be drastically reduced and shares will be in high demand as we saw today with the ask VERY thin and NITE sitting on million share bids which we have never seen NITE do before (it has always been 20k or 5k or whatever number of shares at some low ball bid every single day for months) and today it was multiple million share bids at ever increasing prices. Though I think it was obvious today because NITE still has time to cover before settling that the other MMs were playing nice (scratch each others back) with NITE so as to keep him alive and well but of course your friends will be nice and share their hamburgers with you when there are burgers literally sitting all around for free, as time goes on and it gets closer to a point in time wherein your friends and you are on the last leg starving to death, you will find that your friends will snatch your burger away from you and leave you there to starve. And even with this niceness, they only let about 20M shares change hands, that is VERY stingy from other MMs/clients considering NITE even up to close just kept up with those orders of a million share buy. I dont know man, your scenario could happen, I admit it, but the scenario I am thinking of could happen as well IMO. I guess we shall see, tomorrow will be interesting for sure.
GLTY
AI
