The theory . . . If you were watching WLT close each day for the past two weeks, you noticed a very large transaction (today it's 52,045) each day. This was the trading companies closing out margin accounts. In fact the falling pps from $8 down to $5 has likely been driving mostly by margin calls. The annalists were possibly accounting for this in their $5 price target. What now ? If you didn't have to get out today, you are in great shape. Shorts must buy cover and the margin calls at this point are being generated by transactions lower than $10 (50% = $5). This this fell so fast that there will not be many trapped between $5 and $9, certainly not enough to satisfy 35 million shares short. If you didn't buy cover today, you will help drive the price up tomorrow.