Applying this situation (short squeeze) in a perfect world, If all and only all shareholders (common and peferred stock holders) somehow become synergistic refuses to sell Zero (nada, none, not even 1) share which prevent all shorts position (naked and/or normal short) to cover. What would happen to firm(s) that are in this short position with marginal call???? and how would the price of the stock reactive????
Many thanks those replies with a educated/knowledgeable response.
In another word, if all shareholders refuse to sell at all cost (psychologically removed the monetary value of the shares), firms that shorted the equity will go bankrupt. Any institute that got involved with these short firm (giving them margin access to short the equity) will be effected, or even go bankrupt. But then again, this is highly unlikely because there will be some and many individuals who would rather take the profit, due to fulfilling their desires