Courtesy of ZeroHedge. View original post here.
Having announced in two brief tweets on Thanksgiving – just as we warned was very possible – that he would pull his shares from being available-to-lend, Martin Shrekli has sent the meteoric Volkswagen-like trajectory of KaleBios vertical once again. With short-interest having surged to 49% (from 5.6%), the yanking of his loanable shares has sent KBIO up 65% in the pre-market, back above $45 (from just 45c 10 days ago).
As we noted previously, and now the squeeze really begins, as all those 49% who are short KBIO, according to Markit, rush for the nearest exit, while those who are currently long the stock refuse to sell at any price knowing they have all the leverage.
Whether this will translate into a Volkswagen circa 2008-type scenario, which incidentally looked as follows…
… and where a company which is for all intents and purposes bankrupt suddenly trades with a market cap in the hundreds of millions or even billions as desperate shorts pay any price just to get out…. tune in tomorrow to find out during tomorrow's abbreviated session, because the KaloBios comedy is nowhere near concluded.
As for Shkreli… well he is already the "most hated man in America" – might as well double down.
