So why isn’t Cynk worthless again, as it was before Belize’s hottest stock was briefly worth $6 billion? Probably has something to do with Tom Laresca and other benighted short-sellers having to buy the thing they knew was a scam to cover their shorts.
Ironically, the skeptical attention drawn by the stock’s rise may have played a part. Sensing a classic “pump and dump” scheme, skeptics who sold short the stock instead saw it keep surging….
Many were likely buying Friday to close out those positions. That could explain why Cynk still was valued around $600 million.
Why Cynk Didn’t Sink 100% [WSJ MoneyBeat blog]