u/-jbrs

https://preview.redd.it/4w13nr165hth1.png?width=1184&format=png&auto=webp&s=628eee29105071aa9489dc010101ae3bfd6a917c

Have been thinking about this -

RC has made a lot of moves recently that seem to be about creating additional shorts

• eBay offer, half cash / half stock, which leads to merger arb desks shorting the stock significantly in expectation of large dilution
• Convertible notes which holders hedge by shorting stock
• Even his interviews on e.g. CNBC, where he seemed to be deliberately giving a bad interview - perhaps trying to get that audience/algos trading on public sentiment to short?

Now why would he do this?

I think he's created a springboard. When he decides to, say, pay the convertibles back in cash, or announce an all-cash deal for eBay, the entities that shorted GME assuming we'd have to dilute or that they'd get the shares for the notes will have to cover. A lot, and quickly.

(Remember: the convertible notes indenture was literally called 'Project Rocket'... and RK did seem to suggest that we'd have to go backwards to win.)

https://preview.redd.it/febenmtsecnh1.png?width=1202&format=png&auto=webp&s=39448a94828adf3e622fad98ea783f2b775ae97b

Imagine if this short covering is also happening alongside a big announcement for the business? Like a successful 100% cash eBay acquisition on very favorable debt terms? And/or some other major announcement? (After all, what do you think RC's been working on all this time? The turnaround has been very impressive but do you think that would take up all of his time for the last several years?)

The dual upward pressures of these new shorts covering + increased retail and institutional buying alone could send the stock into the 30s and higher...

And what if he times it to coincide with some other event or catalyst?

He's built a trigger, and he's waiting for just the right time to pull.