I'm a bit unclear which maths you would like me to explain. If you can elaborate/rephrase I'll do my best to explain.
"The shorting business is to fight for a capitulation. They only cover when there is a clear profit or a fear of huge loss in the event of a short squeeze."
Both of these absolute statements are incorrect. They're half-truths that don't fully capture the myriad of reasons for shorting or the varied decision-making around the exits. (Don't think that short-sellers are infallible (i.e. don't ever make losses) or only ever hold their positions for two-to-three months, or whatever time frame. That's far too simplistic an assessment/assumption of the many and varied participants (and their motivations/behaviours) that comprise the market.)
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I'm a bit unclear which maths you would like me to explain. If...
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