Originally posted by: Thump553
Wouldn't FTDs trigger off a short squeeze? (short sellers pushing price up when they buy to cover) Or are you saying that the FTDs never get filled?
The party responsible for the FTDs does have to fill them within a certain time period.
Either they find stock for loan, or they buy stock. If they don't, the broker receiving the FTDs can buy the stock and send the bill on.
Theoretically they can cause a short squeeze, if the brokers are buying to cover - but not if they're borrowing to cover.