Nov. 14 at 9:25 PM
$SOND
Bankruptcy news can significantly impact short sellers. When a company files for bankruptcy, its stock often becomes highly volatile and may be delisted from major exchanges. This can lead to:
-Forced covering*: Short sellers may be forced to cover their positions, potentially driving up the stock price.
-Increased risk*: Shorting a stock that's likely to go bankrupt is extremely risky, as the potential losses can be substantial if the stock price surges unexpectedly.
-Potential for short squeezes*: Bankruptcy news can trigger short squeezes, where short sellers scramble to cover their positions, further driving up the stock price.
