Those shorts who cover with big gains early in the New Year 2023, would need to pay quarterly capital gains filing (Q2 2023) unless they have a large carry over loss to offset the gains. Otherwise if salaried, they could increase the Federal and State tax gains deductions each pay check in 2023. That's what I did for Lightwave gains in 2022. Smooths out a big paycheck to Uncle Sam early in 2022 across the year.