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I have seen this weirdness before on the old DryShips stock where it went wild at some good news and being a heavily shorted stock the shorties ran for the exit in droves.
Remember as a stock rises, unlike us longs who can't lose more than we put in; shorties can lose more and more as the stock rises. And if they don't cover they can be severely penalized by the exchanges and clearing ops - at least in the US!
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