AMC Short Squeeze: Critical Updates and Market Implications
1. What does 'Swaps Getting Bigger' indicate in the AMC short squeeze context?
The phrase 'Swaps Getting Bigger' suggests that derivative contracts tied to AMC (e.g., total return swaps) are increasing in size, potentially amplifying volatility. This could signal hedge funds or institutional players rolling or hedging short positions, adding fuel to a short squeeze if buy pressure overwhelms available shares.
2. Why is the limited float of 450k AMC shares significant?
With only 450,000 shares reportedly available to trade (low float), even modest demand can drive extreme price movements. In a short squeeze, this scarcity forces short sellers to compete aggressively to cover positions, accelerating upward momentum and potentially triggering a cascade of buy orders.
3. How do expiring swaps and dark pool activity impact the squeeze?
Expiring swaps may force counterparties to unwind positions, creating sudden buying pressure. Dark pools 'cracking' implies off-exchange liquidity is drying up, pushing more order flow to lit markets where price discovery is transparent—often exacerbating moves during squeezes as shorts scramble to cover in visible venues.