It works at the start, but the problem is that the people who want to sell their positions need to dump it on the losers and just keep pumping the price and making late comers lose lots of money.
The reality of wealth building is that short term it’s always 0 sum game, long term it’s a way to get rich.
Well sort of... in this case, there are a ridiculous amount of short sellers... more than 100% of all the shares have been sold short.
That means that there is in some ways infinite demand... every single share currently owned HAS to be bought by a short seller at some point, in order to return it to the borrowed actual owner... so as long as all the current owners hold fast, they can sell their shares for as high as they can go.
It doesn't even matter if the company itself is worthless, the demand is there.
You are right about the zero sum in this case, though... it just might be the short sellers who are left holding the bag.
The reality of wealth building is that short term it’s always 0 sum game, long term it’s a way to get rich.