When shorting goes wrong as in a short squeeze, which did happen 2 years ago involving a US company, called Gamestop, it can be very painful or terminal for the shorters (Melvin Capital in its shorting of Gamestop). Conversely, if it goes right, it can also be very profitable.
A naked short, with no underlying shareholdings, can potentially result in horrendous losses or the liquidation of the shorter.
For more info on short selling and short squeeze, click below:
https://en.wikipedia.org/wiki/GameStop_short_squeeze#:~:text=Purchasing%20the%20stock%20to%20cover,jump%20of%20the%20share%20price.
https://www.investopedia.com/short-sellers-lose-usd5-05-billion-in-bet-against-gamestop-5097616
When shorting goes wrong as in a short squeeze, which did happen...
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Last
$2.38 |
Change
0.160(7.21%) |
Mkt cap ! $451.9M | |||
| Open | High | Low | Value | Volume |
| $2.25 | $2.38 | $2.19 | $1.896M | 828.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1096 | $2.36 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.38 | 105071 | 2 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| WBT (ASX) Chart |