Loss due to whiplash reforms, page-109

Gekko, it is a high number and it should be considered that those shorts can be recycled many times before returned to the original lender. To illustrate:

Suppose stock was borrowed when SP around $3 and those 25m sold short.

Now that shorter (or them) is in control knowing fair well there is a little demand until something concrete is delivered to give confidence in a turnaround.

Those 25m might start buying (effectively close short but stock not returned by the wholesale borrower so the short is still open) to give impression of demand then reverse and sell again. Rinse and repeat.

Non of that activity would show up on a short report because it is not 'shorting' activity - just normal buying and selling of shares. The instigator is plying a free trade as the profits already secured from the original $3 short sale, just incremental additional earnings from drawing in buyers and sellers on each cycle.

I suspect this is why shorts have remained stagnant for months - the holder of those shorts is controlling the market. Bought shares in the last mini-run up and now selling them back down, catching retail in the wash retail buying because think it is bouncing then retail selling (loss) when think they are caught in a trap - while the shorter using 'normal' stock is leading the sentiment.

Sooner or later the game will stop and the original shares will be returned. Probably when the short controller gets wind of a potential new buyer entering the fray.

Above figures illustrative. The original shorts will have been sold at various prices. Also the stock borrowing wholesaler might not be directly involved in the shorting, just supplying short stock.