Hypothetical situation: Let's say that I'm a pro who shorted 100,000 shares at an average of $60 per share. $6,000,000 invested. Now lets say I can get out at an average of $5 per share $5,500,000 profit. So you tell me, smart basher, do I risk a short squeeze with the other pros getting out ahead of me for the hope that I can get out at $2 / share and make an extra $300,000? NO, The fast money has been made. I, the pro, will cover (buy shares) and move my trade elsewhere. See ya. By the way, per shortsqeeze.com, at 8/14/08, 35.2% of the float is short.
Yes, the upside risk just got riskier, the spike after-hours is an example...probably pros beginning to take risk off the table, should see more tomorrow. Could get interesting if we can get a decent tape on the overall market. HLYS deal multiple ($50m is .6x annulized sales net of $100m cash) easily implies significant upside valuation for CROX currently trading at .35x sales)...revenues were 12x more and gross profit was 20x higher for CROX than HLYS in the most recent quarter and HLYS's revenue declined 75% in the q, CROX was flat.