RE: RE: RE: Naked shorts Exactly, because he or his broker will tell a couple other wise guys that "we're going to cap this one - come join us we've got you backstopped", and they'll whisper to their friends etc. Then you've got all the hedgies in this area play (recall that Paulson is in EOM) who are looking for paired trades so that they can lever up their positions with somebody elses money - they join the party because the word's out on the capping - pretty much guaranteeing that their short trade will not move against them.
The result is what has happened to GWY share price - defies all logic. Again, remember VEN prior to takeover? We would have duelling press releases with them. Ours would be great, theirs would usually be a little better (but not always). VEN would charge higher and we'd go lower! That pretty much tells the story of what has been going on.