Shorts threw back 36k of those shares in but it is still up 13% on the day
Now showing the shorts returned 92k on the day and price is up Bigly.
How long can they continue with the interest payments? Let me demonstrate how this works. Study it, learn it and understand it.
3 Months ago, November 30th Short interest was 28 Million and the Price was $7 (and even lower lower prior to that), and the interest rate was 85%.
Let's say that someone took $50k of their own money and the Broker loaned them $50k with that 100k in hand they borrowed and sold $100k at $7 = 14,285 Shares
Interest at the time on that $100k was 85% = $85k per year or $232 per day 90 days they have a minimum of $20k in interest already paid.
Fast forward to today if they were to return those 14,285 shares that they borrowed and sold at $7.00 at $11.00 it would cost them $157,135 and the interest rate on that money is now 300% or $471,405 per year which is $1,291 Per Day, $9,037 per day $36k per month.
Not only that but if they returned those shares today they would owe the Broker $157,135 minus the $100k they started with. So not only do they loose the entire $50k plus an additional $57k that they started with plus $1,200 per day oh and that $20k they already paid in interest,
Their broker will be calling them and if they do not come up with the margin amount the Broker will buy at market then liquidate anything else in that account because it is the broker that is on the hook.
I'll bet they double down this afternoon to drop the price a little to help with that interest fee, by that I mean short more today (if they can find them.)
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