Oct. 4 at 11:10 PM
$SCLX.
It's a waiting game, but the shorts are increasingly in a vulnerable position with each passing day.
This situation has the makings of a massive short squeeze due to the legal obligation to deliver undelivered shares, amplified by the 10% preferred dividend. It’s all about timing—once the dividend allocation is clear and the record dates are set, the shorts’ time is running out. The key is staying vigilant and keeping pressure on for clarity.
The 10% preferred dividend stacks on top of these undelivered shares, amplifying the short exposure.
The shorts are now legally obligated to deliver both the original dividend shares and the preferred dividend, which could lead to a short squeeze when they eventually have to settle.
It's a waiting game, but the shorts are increasingly in a vulnerable position with each passing day.
If the dividend structure and payout process are handled well, the shorts may face significant financial consequences.
