In shorting, it takes the exact SAME kinds of real money that it takes to go long a stock, only you are just simply borrowing from whomever is allowing for the borrowing(AND paying interest for that so called "privilege"). The one doing the shorting sells short by taking(borrowing) those lend-ed out shares hoping to return them(buy them) at a lower price. Now, with 30+M shares short, If they all were forced to cover at once(at the 33-days-to-cover level), it would be financial suicide for them, and a lot of wealth could be created for longs in a very short period of time. I'm guessing that this might have been what occurred during the Mid-June-Mid-July time frame, when the stock surged $7 during that four week period, perhaps, it was on those JUNE FUS blowout WK #'s that were later found to be suspect, In any case, that run was likely do in large part to the power of the covering of huge amounts of short interest.
So, yeah, with 30+M shares short, there is DEFINITELY a LOT of money on the line..and with shorting, those losses are not only potentially fast and staggering but potentially infinite.
Lastly, the fact that volume has finally fallen off a good amount over the last month suggest that their power is, more or less, over, that there may be no more leaves on on the tree to shake and that they could even be finally done adding(Actually, small amounts have already been covered over last several two two-week periods of reporting). Classic bottoming process with a huge potential covering period to look forward to. There simply needs to be some buying interest......
Belinostat Data, which looks to be OK, judging by Topotargets "prerelease", could spark some interest. Major wildcard in pooled Apaz data, that would make my day. How funny if Raj downplayed that and dropped a bomb on the shorts. Exciting times! Im very excited about the new sales-efforts, on the less speculative end.
You are mistaken biggest downside moves occur on the last trading days of the year esp for very heavily shorted, small and illiquid stocks like SPPI. Just keep in mind though that Raj and Co may take advantage of this situation and take Spectrum Pvt using Spectrums cash and recently increased credit lines. Mgmt led LBO is a biggest threat for both longs and shorts. An offer of $15 will really hurt the shorts but will put a cieling on the losses for the shorts and likewise for the upside for the longs it will be a 50% premium but will still be a poor offer for longs.
"Last trading days of the year"? oh really, LOL? Ever heard of "The Santa Clause rally"? How about "The January Effect"? Did you know that microcaps usually tend to make their largest moves during a 40-day trading window period that usually ends @DEC/JAN?
As for LBO, not a chance, IMO. Raj succeeded with this first goal(getting the biotech from begin broke to $1 Billion in 10 years). He has a $5 BILLION in three-to-five year goal next....As long as they continue to make lots of ka-ching, the ball is always going to be in THEIR court, NOT Mr. Market's stubborn reluctance to appropriately valuate. They have no urgent need whatsoever to go private, nor accept any offers. Now THAT is called real leverage!