Destiny Media Tech Inc (DSNY)

[sevted]

You can't hedge with a short. Let's say you owned one share and shorted one share.

If it went up, each dollar it went up would lose you a dollar on your short and make a dollar on your long. It cancels out.

If it went down, each dollar it went down would lose you a dollar on your long and make you a dollar on your short. It cancels out.

Shorting when you have a short position is equivalent to selling.

My instinct is this has nothing to do with noramco as noramco was suspected of having a naked short position. There are so many stocks that rally on hype, then retreat that a lot of the pros will just short anything that doubles in price over a short period of time. They probably picked up destiny in a screener and are probably trapped this time and are probably trying to figure out how to minimize their loss and cover as gracefully as possible. They might actually make money as it is trading below the levels most of the shorting happened at.