the last paragraph is exactly my point...the risk is asymetrical here and vrng is not going bankrupt so there is significant downside risk to a short position.
also lets think a bit about what i said.
1. What did the shorts accomplish today? was it positioning as you say, adjusting a hedge? with 2 ml shares?
2. What they accomplished was clearly capping the pps. If just over 2.5 ml shares were long, and 2 ml share were short, clearly the majority of sales today were short, which means it was a 'tactic' not a hedge adjustment. Ie if there are no sellers but people wanting 2 ml shares after the real sellers dry up, typically what happens? well the bids keep getting pushed up right? set off a squeeze maybe?
3. Then we ask, as I said, who gains from such a tactic. Clearly, Google because the lower the pps stays the more leverage they have in a negotiation, and its all they have now.
4. Things don't add up as a hedge adjustment friend....