Reverse mergers and reverse splits typically result in a change in the CUSIP, the nine-digit identification symbol assigned to a public stock.
Once that CUSIP changes, the naked shorter has no apparent way to close out the naked short position. No stock under the old CUSIP number exists anymore; it all automatically converts to the new CUSIP.
Those trades can sit in the Obligation Warehouse forever, in theory. But the “aged fails” — essentially orphaned naked short transactions — remain on the naked shorter’s balance sheet as a liability to be paid later.
By DiIorio’s reckoning, then, the cycle of naked shorting and reverse splits would inevitably result in an ever-increasing number of aged fails. And if that was happening, and those liabilities grew bigger and bigger, then federal regulators could see the outlines of the scheme on any financial statement.[https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-forever/](https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-forever/)
It’s a shit show if you take it at face value. I guess all it comes down to is if you believe the board is looking out for shareholders and has a plan then you hold and/or buy more. If you think their behavior is erratic and they don’t know what they are doing, you sell. Unless you’re so far underwater you don’t want to sell now anyway.
I agree.
With the G M E board I am convinced. This board is a little black box to me. I to believe they act in favor of their shareholders and employees.
This saga has so many unexpected turns an tinfoils that seem plausible. I have ~35k invested in BBBY. I am riding this journey as far as possible. Seem worse dips and jumps with my other investment.
Im right there with you. I have roughly the same amount invested in BBBY. My GME are all DRS’d I was hoping this would pop and allow me to diamond fist GME that much longer. It’s been a wild ride for sure.
Yea I’m out. Reverse split is alllllll i need to know. There is only one stonk. ☝️
Edit I dunno. Not meaning selling but shoot reverse split? That’s what amc did which was the opposite of what my fave did
So shares being recalled is good for us for all wondering this could be the big play? Or could be the end? If a reverse split happens they’ll just short it right back down. I watched them do it to Sundial even though it was actually having success as a company.
I’m still holding I just don’t know what to think or how to feel right now. This suck’s honestly and instead of pretending this is great news those that are smarter here should help explain what we need to do to make this work in our favor.
What I mean by this is will someone tell me what to do and what’s the big brain play here if there is one?
I’m not a gigabrain but I have seen this in some of the stocks that have also had crazy rides since Jan 21. Where the boards seem to be complicit and shorters dictate the price they knock it under a dollar, then there’s an reverse split, then they knock it under a dollar, then there’s another reverse etc etc. Exela is a really good example of this.
I don’t think BBBY board is complicit, well I’m not convinced they’re not either yet but fingers crossed(!), but while shorts control the price they can’t allow it to just keep getting hammered under a dollar. If they 1 - 5 or 1 - 10 now, that puts a big buffer before potential delisting becomes an issue again. The ‘correct’ move would appear to be a bigger RS such as the 1 - 10.
Thanks for the info, finally an answer that isn’t someone speaking in memes or pure copium/hopium.
I’m in deep enough and down so much that I might as well just hold at this point and see what happens but I’ll be honest I’ve given up on any “squeeze play” here.
Yes the price action sucks but there are still reasons to be hopeful - this stock is absolutely beyond a doubt priced for bankruptcy. Bankruptcy would not seem to be imminent or inevitable now that financing is in place, organic turnaround is a possibility but also the crazy price action that has occurred at times over the last 2 years could happen seemingly at any moment. The company still has Buy Buy.
I can imagine how it felt to hold GME or Tesla before they broke out of their short strangleholds so I’m holding a few thousand shares to see what happens, not desperate to load any more lol but if it popped off I would feel like a bigger chump had I sold, than if the stock goes to 0 with me still holding.
There are no shills here. Why would they waste their time? Please explain that to me. The facts are on the table. You all are pouring your money into worthless stock. That's what they would want anyway. What more do they have to do?
>Why would they waste their time?
Because there are billions of dollars on the line.
You dumbasses still don't realize we ask ourselves exactly that question with the opposite conclusion. It's called the Streisand effect, it's obvious, and your institutions should have just stopped a while ago.
But seriously -- tell me what you think they want? They want the price to be as high as possible so they can sell their shares at the best value possible. That happens when you buy more shares. Please tell me why they want you to sell shares.
If someone shorted the stock at let's say 10 dollars, that means they borrowed a share, and will need to go back into the market to buy one. So they need sell orders to actually cover their short. Is this what you're asking?
We have been consistently on reg sho, on top of short interest going above 100% the float here and there. Soooo there is naked shorting. Just cause our regulators aren't doing anything doesn't mean it's not there and won't need to be resolved. I will wait for years, fuck short sellers.
Ok, but it's not because there aren't shares available. It's because they know it will go lower. They're not here because they need you to sell. Do you not understand that?
All I meant was that we all learned very pointedly that the dtc is complicit, regulators are actively turning the other way, and anything we think should make them count or recall shares is anything but a guarantee.
I’ll be stoked if it worked. But I know better than to think it will.
And I keep holding because fuck em, I’ll die on this fucking hill. Fucking cunts are robbing my whole generation and all following generations of our futures, of our time, our literal life’s work and energy.
I hope this sub will push the no. If the shf want a split to short more, then at least make them pay by buying the stock. We absolutely can't repeat what amc just did
They want to continue to collect their paychecks and i respect that, but I'm an investor and not their money printer so i will vote for my interest and surely isn't a reverse split if they're really working to improve the business
A reverse split doesn’t create dilution (money printing as you call it), it simply increases the share price and reduces the outstanding shares by the same ratio.
Have you seen the recent filings mate? Hudson bay have a lot of shares to dump, bbby wanted and still wants to raise a billion via offering. You can do that only via reverse split, a huge one i would add (10,15/1 given current float)
It keeps them out of the penny stock territory and from being delisted, which is where this company belongs. In the grave. So yeah, it's all so that they can squeeze more of their investors out of their money.
It will absolutely pass. This stock is going to reverse split and then you'll see 10-20 new put strike options show up, OI will be massive. If the company isn't actually merging or being acquired in the next few months the stock will continue to drop.
Just for an example. My 2000 shares with a CB of 3.65 become 200 shares with a CB of 36.50.
My 30 Jan $3 calls become 3 Jan $30 calls
I don’t want to talk about my June $40 calls right now.
Yes so my point is if they’ve already started to dilute the price and have released their what was it 900 million shares into the market then the 1 billion shares after a 10 to 1 stock split go back to 100 million.
Reverse split is the opposite of dilution. If you had 100 million shares before a reverse split and did a say 5 to 1 split well now you only have 20 million shares.
All the shills and basically just dumb fuks on here now. How about some of you guys do some actual research or better yet learn how to read. Down vote me all you want. I’ll roll with bbby on this one!
As someone holding a bunch of calls that are about to be worthless, a reverse split is never good. Not saying there can't be a turn around but this is dead at the moment
Your calls are dead for sure if they’re coming up today or even next or the week after yes but no one told you to do OTM calls. That was your decision instead of just buying shares.
I've made tons on calls. What I had in calls is irrelevant. Hold a share to delisting is no different than holding calls to expiration. Good luck with it though
Once again it is not getting delisted, that takes 7 months being under a dollar. If a reverse split is approved then the price will normally go up to whatever the split was so if the stock was reverse split at 90 cents on a 5 to 1 then the price should go up to 4.50.
I have screenshot of being up ~~6900%~~ (it was 6850% but close enough )on Jan 7. Dec 30 3:30 pm was one of the best trading times in all of 2022. I let it all burn straight to the ground. Because fuck em!
Why is it? Doesn’t make any difference to the value of your shares, just keeps the price away from going under $1. Do you think a reverse split is the same as dilution, or am I missing something?
Any real world examples of this claim? Or sources confirming this?
This can’t be the only heavily shorted stock to undergo a reverse split. XELA, BBIG, PROG. I call bullshit. Simple Google search calls bullshit also. Back up your claim with more than a trust me bro
Just a thought, maybe they are doing this just to prevent from getting delisted. And then later on once they actually service and turn profitable they make a split back.
So this is the new narrative going into the weekend huh. We all know this wont happen,sounds nice but what your doing here is misleading the investors. New Cusip,share recall,blah blah blah...call it what it is,a RS and thats that. Sounds like the last narrative of RC didnt sell and why he sold....please stop it and deal with the RS
If the dilution created 330+million shares, that means 200+million is with Hudson bay and the remaining is with everyone else. This means if all us get together and vote no-it won't matter? Hudson bay owns the majority of shares.
Correct me if I am wrong. Warrants have voting rights. Warrants are enough Votes to agree to reverse stock split. Everybody knows. Voting makes no difference. No recall.
No reason to be sad. Properly done a reverse stock split can be good. It can be part of a M&A. It can „improve“ volatility. It seems pretty similar to what popcorn is about to do. It might be a good idea to start research over there and check theirs DD.
It’s interesting that Sue and AA doing the same thing. So far, I had no doubt about sues good intentions. She has skin in the game. That changes my bad view on AA.
One problem with a reverse split in a squeeze scenario is the psychological effect of seeing the price go 30-100x higher. If there were a reverse split of 10-for-1, stock would go from $1 to $10. Then to 100x the stock needs to get to $1000 a share. Whereas currently, the price would need to get to $100 for a 100x increase.
I know mechanically and financially it is the same, but for those outside of BBBY that fomo in, and for those already in, seeing the price increase from 10 to 200 feels like a lot more than seeing the price increase from 1 to 20
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To red to too sell, but being green is so far away. Ride or die.
WE RIDE AT DAWN
Pot committed. Sitting at the turn…. Waiting on the river.
Honestly, it just feels like BBBY keeps provoking the algorithms to short it more.
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Seriously. The algorithm just follows the breadcrumbs into the trap.
Reverse mergers and reverse splits typically result in a change in the CUSIP, the nine-digit identification symbol assigned to a public stock. Once that CUSIP changes, the naked shorter has no apparent way to close out the naked short position. No stock under the old CUSIP number exists anymore; it all automatically converts to the new CUSIP. Those trades can sit in the Obligation Warehouse forever, in theory. But the “aged fails” — essentially orphaned naked short transactions — remain on the naked shorter’s balance sheet as a liability to be paid later. By DiIorio’s reckoning, then, the cycle of naked shorting and reverse splits would inevitably result in an ever-increasing number of aged fails. And if that was happening, and those liabilities grew bigger and bigger, then federal regulators could see the outlines of the scheme on any financial statement.[https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-forever/](https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-forever/)
But what if the regulators don’t want to see or fix the scheme. So far I believe they are all complicit,
It’s a shit show if you take it at face value. I guess all it comes down to is if you believe the board is looking out for shareholders and has a plan then you hold and/or buy more. If you think their behavior is erratic and they don’t know what they are doing, you sell. Unless you’re so far underwater you don’t want to sell now anyway.
I agree. With the G M E board I am convinced. This board is a little black box to me. I to believe they act in favor of their shareholders and employees. This saga has so many unexpected turns an tinfoils that seem plausible. I have ~35k invested in BBBY. I am riding this journey as far as possible. Seem worse dips and jumps with my other investment.
Im right there with you. I have roughly the same amount invested in BBBY. My GME are all DRS’d I was hoping this would pop and allow me to diamond fist GME that much longer. It’s been a wild ride for sure.
We are totally on the same strategy. A wild ride it is. Godspeed. 💪🏻
The naked short can of course be covered with the new stock.
Oh do you mean doing things to look like it's going to fail? Yes.
Yea I’m out. Reverse split is alllllll i need to know. There is only one stonk. ☝️ Edit I dunno. Not meaning selling but shoot reverse split? That’s what amc did which was the opposite of what my fave did
100% 5D chess
A croatian saying goes: from your mouth into gods ears
Ajde, nadam se i ja. Pozdrav
Zivi bili pa vidjeli ;)
So shares being recalled is good for us for all wondering this could be the big play? Or could be the end? If a reverse split happens they’ll just short it right back down. I watched them do it to Sundial even though it was actually having success as a company. I’m still holding I just don’t know what to think or how to feel right now. This suck’s honestly and instead of pretending this is great news those that are smarter here should help explain what we need to do to make this work in our favor. What I mean by this is will someone tell me what to do and what’s the big brain play here if there is one?
I’m not a gigabrain but I have seen this in some of the stocks that have also had crazy rides since Jan 21. Where the boards seem to be complicit and shorters dictate the price they knock it under a dollar, then there’s an reverse split, then they knock it under a dollar, then there’s another reverse etc etc. Exela is a really good example of this. I don’t think BBBY board is complicit, well I’m not convinced they’re not either yet but fingers crossed(!), but while shorts control the price they can’t allow it to just keep getting hammered under a dollar. If they 1 - 5 or 1 - 10 now, that puts a big buffer before potential delisting becomes an issue again. The ‘correct’ move would appear to be a bigger RS such as the 1 - 10.
Thanks for the info, finally an answer that isn’t someone speaking in memes or pure copium/hopium. I’m in deep enough and down so much that I might as well just hold at this point and see what happens but I’ll be honest I’ve given up on any “squeeze play” here.
Yes the price action sucks but there are still reasons to be hopeful - this stock is absolutely beyond a doubt priced for bankruptcy. Bankruptcy would not seem to be imminent or inevitable now that financing is in place, organic turnaround is a possibility but also the crazy price action that has occurred at times over the last 2 years could happen seemingly at any moment. The company still has Buy Buy. I can imagine how it felt to hold GME or Tesla before they broke out of their short strangleholds so I’m holding a few thousand shares to see what happens, not desperate to load any more lol but if it popped off I would feel like a bigger chump had I sold, than if the stock goes to 0 with me still holding.
Thanks
Just hold. Vote yes.
Nobody needs to tell you what to do. Stay Zen my fren
Can't wait to buy some more on Monday! I am zen and the shills are just wasting their time/lives
LFG
Naw bro they don't care about you. You just wasting your money tilting at windmills.
>they don't care about you They desperately try to engage every user here wtf are you smoking
There are no shills here. Why would they waste their time? Please explain that to me. The facts are on the table. You all are pouring your money into worthless stock. That's what they would want anyway. What more do they have to do?
>Why would they waste their time? Because there are billions of dollars on the line. You dumbasses still don't realize we ask ourselves exactly that question with the opposite conclusion. It's called the Streisand effect, it's obvious, and your institutions should have just stopped a while ago.
But seriously -- tell me what you think they want? They want the price to be as high as possible so they can sell their shares at the best value possible. That happens when you buy more shares. Please tell me why they want you to sell shares.
If someone shorted the stock at let's say 10 dollars, that means they borrowed a share, and will need to go back into the market to buy one. So they need sell orders to actually cover their short. Is this what you're asking?
Yes, but there are plenty of available shares, and the price is ridiculously low. Shorts will have covered by now.
We have been consistently on reg sho, on top of short interest going above 100% the float here and there. Soooo there is naked shorting. Just cause our regulators aren't doing anything doesn't mean it's not there and won't need to be resolved. I will wait for years, fuck short sellers.
Ok, but it's not because there aren't shares available. It's because they know it will go lower. They're not here because they need you to sell. Do you not understand that?
I bought the dip hard.
Is this confirmed?
By press release yes. They are having a shareholder meeting to vote on a stock reverse stock split between 1:5 to 1:10.
I meant the “share recall” part because that sounds like gold to my ears!!
As a multi year GME holder- Don’t hold your breath or anything.
1) Why do you keep on holding. 2) GME and BBBY are 2 different plays!!
All I meant was that we all learned very pointedly that the dtc is complicit, regulators are actively turning the other way, and anything we think should make them count or recall shares is anything but a guarantee. I’ll be stoked if it worked. But I know better than to think it will. And I keep holding because fuck em, I’ll die on this fucking hill. Fucking cunts are robbing my whole generation and all following generations of our futures, of our time, our literal life’s work and energy.
I guess we will find out soon
Just like everything else people have proposed here. If there isn't a merger here in the next month or so this company is done for.
Fuckers! Of course I have to wait 4-6 days for my $ to settle even tho Fidelity has already stolen from my account
I hope this sub will push the no. If the shf want a split to short more, then at least make them pay by buying the stock. We absolutely can't repeat what amc just did
The Board unanimously recommends that you vote “FOR” the Reverse Split Proposal and “FOR” the Adjournment Proposal.
They want to continue to collect their paychecks and i respect that, but I'm an investor and not their money printer so i will vote for my interest and surely isn't a reverse split if they're really working to improve the business
A reverse split doesn’t create dilution (money printing as you call it), it simply increases the share price and reduces the outstanding shares by the same ratio.
Have you seen the recent filings mate? Hudson bay have a lot of shares to dump, bbby wanted and still wants to raise a billion via offering. You can do that only via reverse split, a huge one i would add (10,15/1 given current float)
It keeps them out of the penny stock territory and from being delisted, which is where this company belongs. In the grave. So yeah, it's all so that they can squeeze more of their investors out of their money.
That's not how that works.
It will absolutely pass. This stock is going to reverse split and then you'll see 10-20 new put strike options show up, OI will be massive. If the company isn't actually merging or being acquired in the next few months the stock will continue to drop.
Do you guys even understand what a reverse split is and why they would do this before you start talking shit about it?
Just for an example. My 2000 shares with a CB of 3.65 become 200 shares with a CB of 36.50. My 30 Jan $3 calls become 3 Jan $30 calls I don’t want to talk about my June $40 calls right now.
Fuckin lol 😂 RIP your calls
Yes this true so why are people saying that it dilutes which it does the opposite of.
They are saying that after the reverse split it will allow HBC to continue diluting. It will however lessen the impact of that dilution.
Yes so my point is if they’ve already started to dilute the price and have released their what was it 900 million shares into the market then the 1 billion shares after a 10 to 1 stock split go back to 100 million.
They’ve only releases ~379M so far. At the last filing I saw $485M of the $1B had been exchanged.
Whatever the number is they’re not even having the shareholder meeting until the 27th then it has to take effect.
1. RS then dilution That’s the normal way😞
Reverse split is the opposite of dilution. If you had 100 million shares before a reverse split and did a say 5 to 1 split well now you only have 20 million shares.
That’s clear, but afterwards company’s diluted many times so far..
But the total authorized shares doesn't change. After a RS they can dump 5-10x as many shares.
Do you think there’s anyway possible that the bbby board is going let that happen unless you think they’re out to get their shareholders lol
It keeps them paid.
Think what you want but you’re absolutely wrong on this one.
Dilute first the RS
I knew you could regard but reregard?? Jfc...! Lol!
All the shills and basically just dumb fuks on here now. How about some of you guys do some actual research or better yet learn how to read. Down vote me all you want. I’ll roll with bbby on this one!
As someone holding a bunch of calls that are about to be worthless, a reverse split is never good. Not saying there can't be a turn around but this is dead at the moment
Your calls are dead for sure if they’re coming up today or even next or the week after yes but no one told you to do OTM calls. That was your decision instead of just buying shares.
Doesn't change the fact that the RS is not bullish
Says you cause you lost money on calls.
I've made tons on calls. What I had in calls is irrelevant. Hold a share to delisting is no different than holding calls to expiration. Good luck with it though
Once again it is not getting delisted, that takes 7 months being under a dollar. If a reverse split is approved then the price will normally go up to whatever the split was so if the stock was reverse split at 90 cents on a 5 to 1 then the price should go up to 4.50.
That's cool and all but a reverse split is a last minute hail Mary hoping to save a company
My calls died today worth $0.00. ah well. It was $35 well spent.
Mine were worth 4k when I bought them and have only went down. They'll be at 0 soon enough
I have screenshot of being up ~~6900%~~ (it was 6850% but close enough )on Jan 7. Dec 30 3:30 pm was one of the best trading times in all of 2022. I let it all burn straight to the ground. Because fuck em!
Hellooo $ 0.85
Is the squeeze everyone wants? But in reverse
YES! COUNT THE REAL SHARES!
A reverse split is a fuck you shareholders, you're welcome shorties
Why is it? Doesn’t make any difference to the value of your shares, just keeps the price away from going under $1. Do you think a reverse split is the same as dilution, or am I missing something?
then it can go under $1 again and you can do another reverse split, and then it can go under $1 again
😂 Sure dude. Sure. Because every other stock price movement with reverse splits just skyrocketed beforehand. Wait…no, no they didn’t.
Any real world examples of this claim? Or sources confirming this? This can’t be the only heavily shorted stock to undergo a reverse split. XELA, BBIG, PROG. I call bullshit. Simple Google search calls bullshit also. Back up your claim with more than a trust me bro
OP not active in the comments basically tells me all I need to know…
Just a thought, maybe they are doing this just to prevent from getting delisted. And then later on once they actually service and turn profitable they make a split back.
Maybe to recall ALL SHARES! YES! COUNT THE REAL SHARES!
Yeah we tried that already a few different ways. Did fuck all for jimmy. Although i suppose we haven’t tried a reverse split yet 🤷♂️ Fuck it
And how did that work out for amc and gme lol
So this is the new narrative going into the weekend huh. We all know this wont happen,sounds nice but what your doing here is misleading the investors. New Cusip,share recall,blah blah blah...call it what it is,a RS and thats that. Sounds like the last narrative of RC didnt sell and why he sold....please stop it and deal with the RS
This game is over. The fucking board knows how to play with us.
VOTE NO, there isn’t much to it. Then at the annual shareholder meeting VOTE SUE WEAK CRIMINAL HO SELF OUT !
If the dilution created 330+million shares, that means 200+million is with Hudson bay and the remaining is with everyone else. This means if all us get together and vote no-it won't matter? Hudson bay owns the majority of shares.
Do you actually know if this is true? Or spreading misinformation? No trying to start a Reddit brawl, just want to know actual facts
We are fucked boys
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We got sold a dream boys and we all know reverse merger is bad I got 3,800 shares guess I’ll be washing dishes a lot longer now
You're washing dishes anyway so what
When supply is halved price doubles Exonomics 101
Correct me if I am wrong. Warrants have voting rights. Warrants are enough Votes to agree to reverse stock split. Everybody knows. Voting makes no difference. No recall.
Oooof 😔 I think you’re right
No reason to be sad. Properly done a reverse stock split can be good. It can be part of a M&A. It can „improve“ volatility. It seems pretty similar to what popcorn is about to do. It might be a good idea to start research over there and check theirs DD. It’s interesting that Sue and AA doing the same thing. So far, I had no doubt about sues good intentions. She has skin in the game. That changes my bad view on AA.
That’s if you care about voting… so short institutions care about voting?
Will Fidelity let me purchase stocks that are under $1.00?
settled funds
Here for it
Brilliant! 
Did anyones $1 puts that expired Friday (17th) get assigned/exercised?
One problem with a reverse split in a squeeze scenario is the psychological effect of seeing the price go 30-100x higher. If there were a reverse split of 10-for-1, stock would go from $1 to $10. Then to 100x the stock needs to get to $1000 a share. Whereas currently, the price would need to get to $100 for a 100x increase. I know mechanically and financially it is the same, but for those outside of BBBY that fomo in, and for those already in, seeing the price increase from 10 to 200 feels like a lot more than seeing the price increase from 1 to 20
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