Interactive Brokers does not allow shorting RGC

Yes, they do disable all shorting for some tickers in rare instances, regardless of availability to locate.

 

Do you work for or have you worked for IB? If not you're just guessing.

 

Ok dude, I will confirm with IB, if you agree to the following terms. If we are right you will lie at our feet and say: "Sorry, you were right. I'm clueless." Agree?

 

And what exactly would be the reason IB would not allow its customers to short RGC?

 

Illiquid and thus inability to close out in liquidation.
Combined with volatility of the name and inability for the firm to hedge your tail risk (and charge you for it)

 

So they're secretly not allowing shorting of RGC while publicly saying they are allowing it?

 

I don’t know. I don’t use IB.

I was merely answering why IB wouldn’t allow shorting

 

Probably the same with all brokers. I'm sure their models tell them the probability of RGC exploding to the upside are slim at best. They're not their brothers keeper and they've probably allowed riskier bets than this before. I'm sure anyone holding the stock long have given their broker implicit instructions DO NOT lend out their shares to short-sellers.

 

every broker handles risk differently.

My broker is charging more margin for SMCI than for RGC.