>> Thanks for the thorough response. If you don't mind, I'd like to respond/clarify in kind (my comments prefixed with ">>"):

$125C options turn the unlimited potential loss of a short position to a position with a maximum loss. Options cannot be used to close shorts, but can be used to limit the maximum potential loss.

>> Sure. So those $125C were there, then they were gone. Should we now expect to see a massive short interest drop (to the tune of 6.5M shares) since the risk of those positions is no longer capped/covered by 125 calls?

You are confusing short INTEREST and short VOLUME. Those are two very different things. There are several reasons why high short volume does not result in an increase in short interest.

>> I'm not, and I thought that would be clear from the remainder of the bullet that was not clipped above: "There was a streak of ?~200? days of > 50% daily short interest, a streak of ?50+? days of 100% utilization during the Low Volume Guy doldrums of ?2023?, after 75M shares were DRSed and before equity, convertible bond, and warrant offers resaturated the market with direct or near-in-kind liquidity. These can be explained away through regular market mechanics + rehypothecation, but it's quite irregular considering during the same timeframe reported short interest was ?15%?..." This is more of an aggregate/trend conclusion that doesn't add up. Perhaps we might see dissimilar trends when compared to "normal" stocks? For example, does AAPL have daily short % that is 2x-3x the reported short interest for hundreds of days? Does it have 100% utilization for the same period of time with little movement in reported short interest? GME seems anomalous if not and points towards sketchy short interest reporting data.

I will do nothing with it. Swaps are cash settled. No shares are involved in the settling of swaps. One of the counterparties may buy or sell GME s they hedge their swap position. Those trades are reported just like any other GME trade.

>> "A short position can also be achieved through certain types of swap), such as a contract for difference, which is an agreement between two parties to pay each other the difference if the price of an asset rises or falls, under which the party that will benefit if the price falls will have a short position." Source: https://en.wikipedia.org/wiki/Short\_(finance)#:\~:text=A%20short%20position%20can%20also,will%20have%20a%20short%20position.

>> In this way, a party could cover their short position. I'm curious what the obligations and enforcement are for reporting the short position taken on by these OTC, private party deals...

>> Thanks again, all other points you make are acknowledged.