One Twitter user asserted that they are at “war” with the shorts and encouraged others to provide additional information about the short squeeze.
Despite many obstacles experienced by the Celsius (CEL) exchange, including insolvency and allegations of the CEO fleeing the United States, the Celsius (CEL) community has regrouped on Twitter to combat short positions against their preferred cryptocurrency token.
On the social media site, thousands of tweets with the #CelShortSqueeze hashtag have been uploaded, promoting long positions on CEL and encouraging others to do the same and publish additional content regarding the short squeeze. Twitter user Anakinsdad asserts that the community is “at war with shorts.” A different user posted:
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 method that allows investors to profit from a token’s or stock’s decrease. It includes borrowing shares and selling them immediately in order to purchase them later at a reduced price. On the other hand, a short squeeze occurs when opposing investors begin to purchase a shorted asset in large quantities, resulting in price increases and losses for short sellers.
This is not the first time the Celsius community has attempted to shorten CEL. In June, members of the community known as “Celsians” devised an unofficial strategy to force CEL short-sellers to liquidate their positions by increasing the token’s price.
The Celsius company alerted its consumers in July that it had filed papers for Chapter 11 restructuring, which is synonymous with a bankruptcy filing. This is in response to the company’s historic liquidity problem, which prevented users from withdrawing funds from the platform.
After filing for bankruptcy, the company’s attorneys asserted that its 1.7 million registered users forfeited their legal rights to their digital assets. David Silver, a lawyer representing Celsius, said that users of Earn and Borrow accounts should stop thinking of crypto assets as their own.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.