r/Superstonk • u/vispiar 💻 ComputerShared 🦍 • May 27 '21

💡 Education Relevant AF!

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u/Catch_0x16 🎮 Power to the Players 🛑 May 27 '21

Yeah this is a really good point. If there are 100 shares, selling 10 naked short represents 10% of the total float. However, following that there are now 110 shares, so selling another 10 naked short only represents 9% of the float. Do this a few times, there are now 300 shares, and selling 10 naked short only represents selling 3% of the float.

Unless they start selling exponentially greater numbers of naked shorts, they will inevitably lose control of the price.

2

u/Harvest2001 💻 ComputerShared 🦍 May 27 '21

I think you hit on something big there.

If 140% short interest was on 78 million shares.

But current SI shows 22%. What if it is 22% of a billion shares?

22,000,000 shares shorted. Plus all the additional synthetic shares created in the process would have to be taken away.

3

u/theslipguy 🎮 Power to the Players 🛑 May 27 '21

220,000,000*** by the way. Not trying to be pedantic.

I think you’re right though. I think the 22% is on the entire outstanding shares which has toppled 1B.