A lot of shorts think that if Recaf really starts to take off that by they will have time to cover and close their positions - WRONG!
I have seen this awhile back with the old Tribune bonds and DryShips where I made some nice money for a brand new car.
With DryShips it was a buying panic as the shorts thought it was a goner and did not grasp the underlying value. But a takeover buyer did. The stock was soaring so fast, we are talking a dollar a minute, I could not believe my eyes, until the market manipulators, excuse me market makers, has to halt trading. When it restarted it gapped upwards by like 5 to 7 $s instantly. Shorts were slaughtered- instantly!