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Did Citadel really cover their shorts? can the hedgies actually escape without a squeeze? and can they just cover in the dark pool?
I think there is 2 main ways we need to look at this... put options and shorted shares.
The only way for citadel to exit their put position is to sell those put options to someone else, put options cant be deleted... they either expire or get sold. We will see if Citadel has exited in their next 13F filing. The question that plagues my mind, is who would buy put options from citadel, betting against AMC, when AMC is at yearly lows?
Retail wont buy AMC puts, and the time for hedgies to buy AMC puts was at $70 a share, not at $20 a share...
But what about shorted shares/synthetics? these have already been sold to us when citadel shorted them, citadel or the SEC cant just delete these shares as it would involve deleting them from our accounts, which hasn't happened.
So the only way for citadel to cover them, would be to buy billions of AMC shares, which also hasn't happened... unless they've been transferred to other brokers and still exist?
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