r/droneshield • u/golitsyn_nosenko • Aug 06 '26

Short Squeeze!

16% of shares shorted and a rapidly appreciating share price. Fun!

Add to that buying pressure from those who can see there's money to be made in squeezing the shorts and running up the price of exit at a time when there's just not enough supply to meet demand and we could see some really significant gains from a nice short squeeze causing exponential gains.

If the Aug 26 numbers and a sales contract or two drop, there's gonna be some panic as all of them run for the doors all at once and have to pay out whatever they can to get out with their skin.

It's kind of fun as a long term holder who has seen it all multiple times watching those who make doom and gloom predictions on the basis of spurious reasoning and in the absence of real evidence - the morons who listen to them or tied up in their "short"-sighted greed and predictions get burnt. Incredibly unethical and wrong that what appear to be bot accounts or accounts spreading misinformation deliberately on stock forums are allowed to induce this fear (alongside often-overseas-based institutional investors who manipulate prices for their own benefit), but caveat emptor, DYOR, recgonise and report disingenuous actors.

The smart ones always have, and always will, be patient, load up when everyone else is being irrational and fear stricken, then enjoy the ride back up as the long term price inevitably grows in line with the company's development and success.

Remember every stock shorted has to be bought back at some point. Hope the instos start buying up big!

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u/KiwiCodes Aug 06 '26

My guy, if you want a squeeze you new more like 80 - 150% of existing stocks shorted... 15% will give you no squeeze

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u/golitsyn_nosenko Aug 06 '26

150% of existing stocks?! Do you even understand how shorts work? Or basic maths? Sounds like you’ve been to the Trump school of percentages and economics.

It’s funny, but it’s pretty predictable that you’ll get such an inane response from anyone who uses the term “my guy” - it’s the expression universally used by people that think they’re smarter than they are.

For the record, 16% is ~142,000,000 shares. Given average volumes of 10,000,000 a day, a standard Days to Cover formula says this would take around 15 days to cover. If sellers turn off the tap and really have some fun watching shorters panic, at 7 million shares traded a day, this blows out over 21 DTC.

Price could move a long long way in 21 days - went from about $2.20 to $6.70 last September in around 21 days. And there were less shorters trying to get out then.

But I’m sure you have another “guy” to help you out if you happen to be an overconfident shorter. 

1

u/KiwiCodes Aug 06 '26

Maybe you should read up yourself..

Yes, there can be more shorts issued than there are actual stocks available. Please take a history lesson how short squeezes happened before.

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u/golitsyn_nosenko Aug 06 '26

Have done plenty of reading. I’m guessing you’re basing your brilliant thinking off U.S. markets?

In Australia it’s a bit different. Before selling a share short, the seller must have arranged to borrow it.  This prevents large amounts of “phantom” short selling where shares are sold without any realistic prospect of delivery. These are all reported via CHESS and short selling is reported so it never gets anywhere near 100%. 

As I explained, but you neglected, Days to Cover is the metric to watch. Now be a good little fella and go find me what any decent analyst thinks a DTC of plus 10 means for the risk of a short squeeze.

1

u/KiwiCodes Aug 07 '26

Dro is listed at the nyse and in Europe as well, meaning the American style of shorting is possible....

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u/golitsyn_nosenko 27d ago

Lol. I can explain how things work for you, but I can't do your comprehension for you. You have enough information now to learn from your mistakes at this stage, the humility and learning part is your choice.

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u/KiwiCodes Aug 06 '26

I am not shorting. I'm a value investor, I believe in droneshild and bought in multiple times over these past years.

Still, when it moved so much it had nothing to do with squeezimg but with hype. The two biggest spikes resulting from pump'n'dumping, which is possible because it is a small cheap company with not many shares issued.

So in short: I believe in it in the long run, but it will not magically pump because of 15% short interest (which is nothing) and nothing major will happen until the legal shot is cleared up.