If that were true Melvin Capital would just say nothing and ride the profits. If you are a short seller with a covered position (with options) your goal would be to let as many desperate/stupid people enter before the crash because it means there will be less resistance to price drops after the crash because all the dumb and unpredictable money is gone. You would instead push propaganda that your shorts are not covered and lure people into your trap.
If your shorts are not covered then you are basically completely screwed and are willing to do absolutely anything to tank the price as soon as possible even if it means you do not get maximum possible returns. You would push propaganda that your shorts are covered and convince people that you have complete control over the situation.
If you told the truth you would be exposing yourself to unnecessary risk in both cases.
If your shorts are not covered then you are basically completely screwed and are willing to do absolutely anything to tank the price as soon as possible even if it means you do not get maximum possible returns. You would push propaganda that your shorts are covered and convince people that you have complete control over the situation.
If you told the truth you would be exposing yourself to unnecessary risk in both cases.