Is Calvin Going to Make It?
The hedge fund boom and concerns about the economy have produced a record volume of short positions, in which investors bet that a stock will drop. But what happens when that move sours—when the stock goes up and investors have to cover their losses? That's the short squeeze. Illustrator Christoph Niemann tells our heartbreaking story.
Is Calvin Going to Make It?
Calvin Company invites Mandy Market to dinner. But he looks like he's in lousy shape, and she eyes him skeptically. A short seller watching this unfold bets that Calvin Company is in trouble.
Looks Can Be Deceiving
It turns out that Calvin Company isn't the loser he seemed to be. Even Mandy Market is intrigued, and Calvin's stock starts to rise. The short seller who bet against him is getting nervous.
Dog Days
Calvin's puppy is winning dog shows and bringing in cash. Calvin looks more attractive than ever. To cut his losses, our short seller buys back Calvin Company stock, which sends it up even more.
Short Seller Prevails
Mandy Market and her girlfriends notice Calvin Company's momentum and shower him with even more attention. He has never had it so good. The short seller has helped turn Calvin into the hottest ticket in town and now has to pay up.
