Chart, page-17026

I’m referring to your exact example but it still doesn’t make sense.
You say they cover shorts when they think the price will rise and hence help to pump the price and their hedged long positions therefore then make money...
BUT every hedged long unit they hold ONLY makes them net $ when the corresponding short unit position is covered (to remove the hedge).
So, again, why not just buy on market from scratch ? It has the same effect - each long unit ONLY makes money when they buy a unit, and they are buying on market pumping the price exactly the same as their short covering would do.
How is it different?
The market sees “short numbers reducing” in your example is the key difference I can see... What else?
Direct price pressure and benefiting from the long position is no different as far as I can tell...?
Unless the buying/selling is at key times re TA to fool and trap other traders..?
Interesting.


Meanwhile, what do we actually KNOW about the GXY shorts?
That there are at least 50m of them that need to cover at some point...?
Surely this will pump the price big time at some point, regardless of whether they are hedged or otherwise..?


Thanks