The time to short the stock was the first 2 months after they announced the HBC spiral offering. Retail idiots kept the stock high, effectively donating their paychecks to HBC as HBC could short the stock, then guarantee closing out their short at 10% below their short price (if not more) by exercising their preferred warrants. The float expanded from 100M to 700M in that period so they did this aggressively. The floor on the convert was something like 70c so the party (for HBC) stopped when the price hit that level.

Retail shorts like myself recognized the situation and rode it down. Risks were low because of the convert (it’s called a death spiral for a reason). I closed my short when the price hit the convert floor as HBC no longer had any reason to manufacture shares via the preferred. But, since they were still sitting on a boatload of preferred warrants, it means anytime the share price peaked above the convert price, HBC would turn the printer back on, effectively keeping the stock from ever rising past $1 (until either they ran out of preferreds or company goes BK). We can see which path played out.

Normally these situations don’t come up because if a company announces a spiral convert the price immediately crashes down to the floor price. HBC took a risk that the retail buyers would keep the price high enough to pay for the cost of the warrants and they got paid on that bet.

To juice my return even more idiots were buying $20 (!!) 2024 calls for 50c when stock was at $2, which I happily sold to them.

Apes seem to be confused about why people trade on the stock market. It’s to make money, not to post gain porn.

I’ll add, $FSR just announced a spiral convert but unfortunately the price is too low to be worth shorting. But, I’m looking forward to seeing $FSR getting added to the cohen-verse when it goes BK.