A couple of things bother me in coming to grips with the short position.
Firstly, I'm guessing we are dealing with multiple short traders, not just a single entity. This makes it hard to treat them as a single group with a particular motive at a specified time. There is no reason for all of them to act in the same way at the same time, other than a common objective and way of thinking.
Secondly, although the volume of shorts has increased to a large number over time, there may well have been some churning of short positions. For instance, 1 Million shares sold short at $7 bought back in small parcels over time at $6, $5 or $4 and gradually sold again at lower prices than they were bought. This might progressively extract profits whilst maintaining or even increasing the shorts outstanding total.
I'm just guessing with these thoughts and I'm interested to know any other views.
AIMO GLTAH WBT4TBW
WBT Price at posting:
$3.19 Sentiment: Buy Disclosure: Held
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