The price dynamics of this are interesting, and a bit counter-intuitive, since selling the share short also puts short term pressure on the share downwards (at the sale price), especially if there´s a lot of shorting. Its because of this, and also because due to monetary expansion there is a positive long term bias in share prices, that short selling isn´t quite as simple as sometimes presented.
As pointed out above, if there is then a subsequent increase in price, and this can be because short sellers are forced to buy back their short for any reason (short squeeze), prices can very quickly increase out of control. The best case of this was the Porsche-Volkswagon "infinity squeeze" - when mathematically speaking, absent intervention, the price would have gone to infinity.
As pointed out above, if there is then a subsequent increase in price, and this can be because short sellers are forced to buy back their short for any reason (short squeeze), prices can very quickly increase out of control. The best case of this was the Porsche-Volkswagon "infinity squeeze" - when mathematically speaking, absent intervention, the price would have gone to infinity.
https://moxreports.com/vw-infinity-squeeze/
Good times.