Sep. 10 at 10:57 AM
$MGN A strong holder base is one of the main components of turning a potential squeeze into a real one, particularly in setups with intense borrowing, a high short-sale ratio, increased CTB, and high price elasticity with respect to the order flow due to demand from both bargain hunters and existing shorts who want to or have to cover.
If holders don't fall into shorts' traps that aim to artificially lower the price during low-liquidity hours and sap sentiment to mislead holders into selling, most price drops will likely come from synthetic short-to-short cyclical trades or short-to-bargain-hunter one-way sales. Eventually, there will likely be no new shorts left to take on the risk of the existing ones. With no weak hands and no new shorts left, the magnitude and ferocity of the squeeze the remaining shorts may encounter may be unpredictable and unprecedented. (nfa, dyodd)
