THE SHORTS WILL GET COOKED SOON.THE FLOAT IS GETTING ABSORBED.THEY ARE GOING TO BE COOKED SOON.
Although short selling is allowed on securities traded over-the-counter, it is not without potential problems. These stocks generally trade in low volumes. That makes them Illiquid. An investor trying to cover an unprofitable short position could get stuck
What happens when shorts have to cover?
So what does short covering basically mean? In very simple terms, it means that the trade has been earlier shorted and in order to square of their positions, they had to buy. Since there were so many short positions created in the market, people start buying, and that leads to the market going positive.
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