When there is panic selling the bids dry up because no one wants to catch the falling knife. On reversals, the asks dry up as no one wants to sell on reversals lead by news. Only difference is that shorts are forced to cover if it runs away. $ABXX.TO
There was covering yesterday already at a 13% gain. Maybe it drops today as shorts use the covered shares to short it again and kill momentum, but the exchange will continue to grow. This audit removes 100% of any doubt about the exchange and the price here as never been better.
I have added a little more recently, and even then it had poor liquidity. Couldn't imagine trying to cover millions worth of shares in this post-audit environment.
There was covering yesterday already at a 13% gain. Maybe it drops today as shorts use the covered shares to short it again and kill momentum, but the exchange will continue to grow. This audit removes 100% of any doubt about the exchange and the price here as never been better.
I have added a little more recently, and even then it had poor liquidity. Couldn't imagine trying to cover millions worth of shares in this post-audit environment.
Feels like we are that same moment $GME went through.
$ABXX.TO has a massive short interest. 3.5M reported shares. Naked shorts perhaps far larger. When you pull out all the firmly held shares by management and ceo dot ca and Noticit, this short interest is a sizeable percentage of the tradeable float. And no options to satiate demand. If you want exposure, shares are the only way to buy.
Company fundamentals are never better. 24.8x exchange volume growth YoY per Joseph’s report. 71% QoQ growth. Cashed up from the last raise with lots of runway.
Short report that caused the decline has been repudiated by the best law and accounting firms in the world. Meanwhile shorts added millions of short shares on the downside.
Add together the reported short interest of 3.5M shares and the demand from people shaken out of their position, I speculate we could possibly be looking at 5M+ share demand from inside this closed ecosystem alone. 200k average daily volume. That’s 5 weeks of 100% of volume worth of buying demand. Who is going to sell these shares? And most importantly at what price?
If we see price action cause a double, suddenly trend followers from outside this closed ecosystem will be looking at this stock. They will want to pile on and chase the momentum. But here’s the thing. There is no options. The only way to satiate demand is with shares. If the Reddit WSB bros pile on, look out.
I think we are going to see lots of end of day MOC down ticking. Short sellers cannot risk this stock being flagged by trackers as running hard. Demand from outside this ecosystem could bury them. The situation is dire enough without WSB piling on.
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