Replies to post #126568 on Cascadia Investments (CDIV)

[Hawks_Stocks]

You're quote under number 1 is talking about all the naked short positions that were created before the law came into effect. It's called Grandfathering.

Number 2) LOLOLOLOL Like CDIV will go "out of business." It seems you may be oblivious to certain aspects.. ;-)

[Ninja7]

Quick response as I'm about to head home from the W...

1 is a reference to having all of the shorts covered, not any individual stock (see the deep capture link for a better explanation)

2 is not an issue with CDIV as they are in an excellent position largely due to their current stock price. Many companies are driven out of business by having their stock shorted to 0. We've been preventing that from happening for the past year by buying the stock.

As far as what forces the cover...it could be many things...uplisting, good news triggering buying pressure, or (maybe most likely) one of the MM's turning on the others to avoid being left holding the bag, etc. The MM's really don't want the SEC catching them doing illegal stuff, so once the short position gets large enough for one of them, he'll likely turn on the others.