Way back in the bubble days BLTI got run up and down a few times on big volume (and usually good news or press). This put it on the day traders's screens. When the stock woke up early this year they once again joined the fray, short and long. I think the early shorts were lots of this hot money.
The later shorts came in on the Diodem lawsuit. These shorts at 10 are probably the most venal and directed of the lot. They had inside info that was going to kill the stock but it didn't. The next group of shorts at 12-13 came in on the secondary, this includes the selling brokers who need some short shares to defend the price right after the dilution. The last group of shorts went after the stock at its high. They are making money short blti, are likely out now and will have no hesitation shorting at 16 or 20 again. These guys may be 1-2m shares worth.
The lawsuit and true believer shorts were so convinced they bid up puts in late Aug and early Sept because the stock was restricted. If we see this happen again in the next few weeks as their Dec put bets expire worthless then we know they still are backing their scenario. If not they are looking for the exit. If they are to get stampeeded out it is likely to be in the January bull market when the Naz breaks well above 2000 and the Dow above 10k.
<<<The last group of shorts went after the stock at its high. They are making money short blti, are likely out now and will have no hesitation shorting at 16 or 20 again. These guys may be 1-2m shares worth.>>>
Yes, but keep in mind that in time the shorts become their *own worst enemy*. When we hit 16-18 the 6,000,000 underwater shorts will be buying from the new shorts and competing with new and old longs for those shares.