Welcome back to the channel everyone today, i want to explain what exactly is going to happen if amc falls below 10 per share and whether the shorts can actually cover so stay tuned and let's make some money, and now i want to dive straight in with the Key information so to cut a long story short, it doesn't really matter if amc falls below 10 per share because for the shorts to cover they need to buy shares. Now it doesn't really matter if they're buying synthetic shares or buying real shares, because at the end of the day, they need to buy all of the shares to close out all of their short positions. So i want to explain why it doesn't really matter if you're holding real shares or synthetic shares, and then i want to explain whether the shorts can actually cover and what would happen if they did. Mr amc or paul commented saying when you sell a stock, it sells on a first in first out basis, the fifo basis, which means it will sell your oldest shares first, which also means, if you bought amc somewhere before march 2021.

You likely own real shares which the hedge funds need now, as howie said. That would explain why so many people are trying to get you to sell your shares right now, because it mean that you're selling, your oldest shares, aka the real amc shares, and that would also mean that if the og apes that have been holding their shares for A year or longer end up selling, then the squeeze could be reduced if the hedges can get their hands on these real shares. Now there is a screenshot here where you can actually select from the disposal methods below on how you sell your shares, whether you sell on fifo, first in first out, lifo lasting first out or many other different forms of selling. Now this isn't really available to distinguish between selling real and selling synthetic shares is to distinguish for tax purposes.

I think it's very important to remember that there aren't 100 or 120 million shortage shares at this point, there's likely billions upon billions of shortage shares due to all the synthetics that have been created. Therefore, if the hedges buy our 500 million real shares, they still have around one and a half billion shorts left to cover. They can't just delete those short positions because they've actually created a synthetic share and sold that synthetic share to people like you and i and obviously, if they were just to outright delete those shares that would involve deleting money from genuine people's accounts. People based in the us in the uk, in europe and in asia, where these hedge funds, just don't, have that kind of jurisdiction and therefore to close out of their short positions.

The hedges need to buy and cover all of the shares, not just the 500 million real shares. They need to close out of their full short positions, whether that's 2 billion shares, 3 billion shares or, however many shares. That really is. They need to close out of every single position.

I think it's very important to note that if the hedges do cover those two plus billion shares all at once, it will absolutely cause the short squeeze. Even if they push amc down further down past ten dollars per share, they can only do that by creating even more synthetics we're, obviously holding 90 percent of the shares in issue or 90 of the float adam aaron didn't really specify, but as a result of that To push the price down further, the hedges need to create more synthetics and therefore, when they close out of their short positions, they may not be buying back just 2 billion shares. They may have to buy back 4 billion or 10 billion or whatever the number ends up being after they've pushed amc down below ten dollars, and even if they do end up covering their shorts slowly, not all at once. It will still end up causing the short squeeze because they still need to buy back two plus billion shares.

This isn't just a case of buying back 50 million shortage shares. This is a case of buying 2 billion shares and therefore, even if they do this slowly over the span of a few months or maybe even a year or longer, it will cause the squeeze because of that massive, constant and consistent buying pressure. Now i personally believe that the hedge fund's plan is to never cover their short positions. It isn't to drive down amc below 10 and then cover their plan is to never cover and to attempt to sell a box amc guys.

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So guys, if you haven't already be sure, to sign up to block five using the link in the description below to get up to 250 dollars of free bitcoin, this post on reddit says they don't plan on covering ever if the hedge funds were all thinking about. Closing their short bets, they would have done so recently with the stock at such a low price. That was the bottom the best time to cover with them not taking the opportunity to do so. That just tells me they plan on never covering and never paying off their debt.

So it's up to us to break them. Keep the hammer on the sec keep screaming about dark, pulls and fail to delivers and market manipulation on every social media platform screen to the world, or whoever will hear you that the system is rigged, demand those at the top with the power to do so. Actually unrig it now. Obviously that means their plan is to attempt to sell a box amc.

So they don't have to worry about us, the retail investors, because amc would be relegated to the otc market. Now obviously, regular retail investors like you and i can't actually trade on the otc markets and therefore, at that point the hedges will have won, as they won't ever have to cover their short positions, because there won't be any amc buying pressure now, obviously, to get amc Relegated to the otc markets, they have to first push amc below one dollar per share and also likely bankrupt amc as well. Now i think, there's two major problems with this. Obviously, the first one is that amc is in no way ever going bankrupt.

Amc is a thriving business that is growing by the day, and the second problem is that i do not believe that the hedges will be able to push amc below one dollar per share because the more they push the price of amc down, the better of a Buying opportunity, that is, for regular retail investors, like you and i it says here - failure of a company to meet a minimum closing bid price of at least one dollar per share for 30 consecutive trading days can trigger the de-listing process. When this happens, the nasdaq issues a deficiency notice to the company. Now after receiving that deficiency notice, the company has 180 calendar days to return to compliance. So that means not only do the hedges have to get amc below one dollar per share, but they have to hold it there for over 210 days in total.

Now, if amc exceeds that one dollar per share for 10 consecutive trading days, the listing process is unwound and amc will no longer be delisted. Therefore, the hedges have to hold amc below one dollar per share for 210 days without slipping up for 10 consecutive days. Otherwise we win now. Obviously, in those 210 days i imagine the eight army could buy the entire float of amc.

Many many many times over. If amc is trading at 50 cents per share, it will be very easy for a singular ape to spend a thousand dollars and buy 2 000 amc shares all in one go now. If the four million apes out there all spent one thousand dollars and bought those 2 000 shares, that would be 8 billion shares all purchased at the same time or all purchased over a 210 day periods. Now, obviously, 8 billion shares is around 16 times.

The current amc flow this would be purchased by the apes over a 210 day period, which would cost a thousand dollars over a span of 210 days now. Obviously, there are a number of apes out there that don't have 1 000 to spend on amc over a 210 day period, but at the same time there are many apes out there that spend a thousand dollars in a much much smaller time frame than 210 days. Now you may say tom, i still don't think that'll work. The hedges can continue creating synthetics as long as we continue buying them.

They could create 5 billion 10 billion 50 billion 100 billion, even a trillion synthetics. They can just keep on creating them. Now. I think there's two main problems with that.

One is actually how seller boxing really works and number two is the fact that at some point the cost will be too great for the hedges and they will end up slipping up and we will end up causing the short squeeze so number one seller boxing. Only really works when a hedge fund has absolutely zero competition and there's absolutely zero buying pressure. They can continue creating unlimited synthetic shares, which does continue pushing the price down, because there is zero, pushback and zero competition. If you rewind to when blockbuster went bankrupt, there was not as many retail investors trading in the market as there is right now.

The amc and gamestop movement did not happen back then, when blockbuster went, bankrupt. Blockbuster was seller boxed because the hedges faced absolutely zero competition and there was no buying pressure. They didn't have to fight against anyone to push the price down, but with amc and gamestop you'll have millions of retail investors buying amc and gamestop shares on mass if the price falls below one dollar per share. Now i think if this were to happen, there would come a time eventually when the cost became too great and the hedges ended up messing up, the hedges obviously have to hide and roll these failed delivers.

The hedges obviously have to roll their married and divorced puts every single time it comes around. They have those interest, borrowing costs, they have to pay other hedge funds in order to help them roll the fell to delivers and the synthetic shares and make sure that nothing is found. Now, if the edges did end up pushing amc below one dollar per share by creating like 50 billion synthetic shares, it would only take a fairly small movement for those hedges to be liquidated. The daily trading volume for amc wouldn't be between 10 to 50 million shares per day, it'd be between 100 million to 500 million shares, or a billion to 5 billion shares traded on a daily basis, because the price would be so so low and shares would be So easy to buy in massive massive numbers and therefore, if apes ended up buying two and a half billion shares of amc on a single day that could cause the price to rocket from 50 cents.

A share to 2.50 a share and the hedges would be down. 500 on their investment and end up being liquidated. Personally, i don't think the hedges will be able to push us below 10 per share, but even if they do i'm not worried, because i know that we will still win. I think it's important to remember that no stock and no company that is as big as amc as well known and as popular is listed on the otc market.

The otc market is for dead and bankrupt companies, not for thriving companies generating millions and millions of dollars, and because of this i don't believe that amc will ever end up on the otc markets and therefore the hedges will never end up winning they'll. Be fighting this unwinnable battle because it costs us nothing to buy and hold, but it costs them every single day. Guys be sure to. Let me know down in the comments below what you think would happen if the hedges pushed amc below 10 per share and if you think they could cover and as always guys if you enjoyed this video, be sure to check out some of my others.

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