Re:‘Meme stock’ rally rescues AMC theaters from $600M debt
by shaklee3 on Sunday January 31, 2021 @11:54AM
(#25980154)
That was not a misunderstanding at all. sure, anyone can take a short position. But for the number of outstanding shortage there are, it has to be institutional investors and above. And sure, anyone can close out at a higher position, but that doesn't mean they didn't take a huge loss to do so. I'm not sure why you think that was in misunderstanding.
Anyone can take out a short position. It's only marginally more complicated than buying a stock. Plenty of retail investors are taking short positions, too.
More importantly, the idea that short interest only goes down is a mistake. Anyone, retail or institutional, can close out a short position and re-open a new short position at a higher price. Total short interest remains unchanged, even though earlier shorts have been closed out.