Sep. 9 at 7:19 PM
$HAO Imagine someone has two trading accounts. Account #1 has a hidden short order sitting at
$3.60. Account #2 starts buying shares around
$3.60, which can make it look like there is strong buying and encourage other traders to FOMO in.
Then they sell those shares into the buying pressure they helped create. If they can push the price back down afterward, they try to trigger stop losses and create even more selling. That gives the short position an opportunity to cover at lower prices.
That’s how crafty short sellers can be.
