One Twitter user encouraged others to post more information about the short squeeze while asserting that they are in a “war” with the shorts.
Despite numerous difficulties faced by the exchange, such as bankruptcy and rumors of the company’s CEO leaving the United States, the Celsius (CEL) community has once again banded together on Twitter to combat short positions against its preferred crypto token.
The hashtag #CelShortSqueeze has been used in thousands of tweets promoting long positions in CEL and enticing followers to follow suit and share more information about the short squeeze. The community is “at war with the shorts,” claims Twitter user Logantheinvestor. A different user wrote:
what #CelShortSqueeze teaches you is never to go against a community led movement. The probability of snowballing is huge if not almost certain.
— Midas (@____Midas_____) August 9, 2022
Short-selling is a tactic that enables investors to profit from a token’s or share’s decline. It entails borrowing shares, selling them right away, and then buying them back at a lower price later. On the other hand, a short squeeze occurs when rival investors begin to buy in large quantities a shorted asset, causing the price to increase rather than drop, which results in losses for short sellers.
The Celsius community has attempted to squeeze short CEL before, so this is not a new endeavor. The “Celsians” community developed an unofficial recovery strategy in June to force CEL short-sellers to cover their positions by raising the price of the token.
The Celsius company informed its customers that it had submitted petitions for a Chapter 11 reorganization, which is synonymous with filing for bankruptcy, in July. This comes after the company’s infamous liquidity crisis, during which platform users were unable to withdraw their money.
The company’s attorneys claimed that its 1.7 million registered users waived their legal rights to their digital assets when the bankruptcy petition was filed. Lawyer David Silver summarized Celsius’s claims by stating that users of cryptocurrency deposited in earn and borrow accounts should stop thinking of the assets as their own.