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gotinearly

01/28/21 4:07 PM

#30935 RE: rrao11 #30934

My belief is that the MMs sold short into the run and then must back fill the orders so they orchestrate a price reduction to cover the position. Example, they sell 100M shares short for an average of .03 (range .02-.04) into a run of high demand. then when the demand decreases they trade among them selves controlling bid and ask to bring the price down which panics the market so they can average cover at say .025. they will place fake ask walls or will will have one or two big sellers (triton) that will help them replenish the short position.

gotinearly

01/28/21 4:10 PM

#30936 RE: rrao11 #30934

Obviously this happens over and over again. They may not get to close the position before the next run so they will average the cover price again. This is why you always see the chart rise and then at a certain point it will retrace 50% so they can average out