I believe that the RS was necessary. I would even go further and say that it should have been 8 to 1 instead. I don't believe a RS has any long term consequences.
The big messup was his "save investors from themselves" tweet. That was boneheaded - even though he was right. He kept professionals from messing with the stock until someone found out a day or two before the RS went into effect.
I believe what we are seeing is deliberate shorting by a Bright lender. It will end eventually.
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