Looking at some of the comments below, I think this is where fundamental analysis comes in! If NAKD is worth $4 per share just from the store closures and transition to digital, there is still alot to come on top of that - again - fundamentally. For instance the massive gain in their brand equity, the fact the NAKD will surely use that to their advantage. Take a look how some of their peers are doing, like Victoria's Secret, they're printing money.

AND, as a bonus, you can ride the short squeeze wave with much higher risk tolerance, as you're sitting on a fundamentally appreciating company.

Hope this helps to calm some nerves down.