It's possible that MM would short at .0004 and cover at .0003. But that's just a normal everyday market making. They buy at bid and sell at ask and short at ask and buy at bid. That's how they make their living. But this is NOT what people are referring to when they talk about 1 trillion shares short on CMKX.
About boxing at .0001. I still can't follow what you're talking about. I've been swingtrading the big board for many years and when we say "Hey they're trying to box this in" we mean that the MMs line up at the ask (without the shares) to discourage any more buying and to encourage the sell momentum. So you're saying they were shorting at .0001 and covering at below .0001??? I know of one person who had sold at .00008 on a market order because he got tired of waiting. But he was the ONLY ONE who was able to sell because he changed his order to market. The fact is again, 100s of bs of shares were bought at .0001 none of which were able to be sold back at .0001.
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