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How does the #CELShortSqueeze work?
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piggleii is in CELShortSqueeze
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I know there are a lot of skeptics about the #CelShortSqueeze, myself included, but that isn't the purpose of this post.

I'm just trying to figure out the logic of those participating in this short squeeze.

So to participate, all you do basically is buy as much CEL as you can and hold it (I think). My questions are:

  1. In doing so, would you not reduce liquidity significantly such that if some whale (say Mashinsky or his wife) decides to dump a ton of CEL, the lack of liquidity actually causes the price to tank faster? Or same if there is a market meltdown and retail decides to dump all of their CEL en masse.

  2. How long do you plan on holding CEL as part of the "short squeeze"? What are you going to do if you're faced with a shorter who is minimally leveraged and can withstand huge price swings without being liquidated, AND is also prepared to hold/short CEL for longer than you're willing to hang on to your bags, maybe for months or years? Does it just then become a game of who can outlast the other? Because, eventually, you're going to have to sell, right? You're not seriously going to hold on to coins of a company that is literally bankrupt forever, are you?

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2 years ago