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IPFS News Link • Wall Street

Mark Cuban Presents A "Little Trick" For Creating The Mother Of All Short Squeezes

• https://www.zerohedge.com, by Tyler Durden

 To wit, late on Jan 26 we said that a "little trick" that is available (for those with cash accounts) was for holders of GME stock to call back shares they owned of the heavily shorted names.

Just a few hours later, early in the Thursday premarket session, things started to really move: that's when GME hit an all time high of $513.12 which has yet to be topped.

So did people call back their shares? Perhaps, we don't know, or maybe that's about to happen. According to S3 Partners, the total short interest is still a whopping 113% of the float, which means the squeeze could easily go on for a long time if the buyers kept applying pressure.

And none other than Mark Cuban may have assured of just that.

In a series of tweets on Friday, the iconic investor and "shark" compared the lending and rebate payment mechanism in stocks vs DeFi crypto tokens (where the bearer gets the benefit of the borrow fee and not the broker) and said - in an almost verbatim paraphrase of our "tricky" tweet from two days earlier - the following:

"one trick that I have been on both sides of is to lend out stock to shorts at a high APY and then call back my shares, which forces the short to cover. Now if #WSB did this en masse, it would be the mother of all short squeezes ".


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