Fung_derf,
You’re mixing up two completely different things:
The preferred share dividend Overstock issued in 2019 (Series A-1) was designed specifically to expose naked shorts. It was a non-tradable, non-convertible security initially, which triggered panic covering because shorts couldn’t deliver it. That’s the event that caused the short squeeze.
The convertible preferred stock you’re quoting (Series 1 and 2) came much later, part of an equity financing strategy under new management—after Patrick Byrne was gone. That had nothing to do with the short squeeze mechanics we’ve been discussing.
Two different timeframes. Two different purposes.
One was a strategic move to expose shorts.
The other was a financing decision, like many companies make.
You can look at the timeline yourself.
But conflating the two doesn’t change the fact that Overstock’s preferred share dividend strategy worked as intended at the time.
— Krombacher
Market Data 
Markets 
AI
