I really didn't know. Very early in my trading development I came to the personal conclusion that I'm not comfortable shorting individual common stocks and may be that has kept me away from this particular piece of knowledge.
Then, i think it was a right choice, although, there's many in here that would disagree with me and you. In the end, it's for us to choose. That was a joke, a little thought visualized in popular memes. I got no data on how many fresh folk ends up like that. Heard multiple times tho that people were very exited of getting 30x leverage or more, thus the fate would be quite similar, just faster.
I base my decision on mathematical foundations - theoretically the risk in a short trade in a particular single common stock issue is unlimited and we frequently see(at least 2-3 times per year) stocks that go up 1000-2000% in a single day. We never see stocks falling 2000% in a single day... I wonder why is that : ). Not that I am a perma bull, I just use ETFs to participate in the short side.
Same conclusion but different approach, cool. I learned through sims that out of 500+ deals , 70% of my loses were short positions. Solution was simple. ,,BRK joins the server''
Most silicon valley companies are almost by definition zombie companies since the have very little hope of ever making any money. Especially the SPACs of the past 3 years. Uber, Lyft, Draft Kings, etc. In fact any SPAC has a 99% chance of being a zombie company. Almost every MJ/cannabis/THC company has no chance of surviving without the US government legalizing banking for the sector which is unlikely as long as the octogenarians rule. The funniest stock graph is still Tilray, it is down like 97% from shortly after its IPO. The NASDAQ itself has become a repository of junk zombie companies thanks to their lack of rules and governance. Oh and every Chinese listed ADR is a zombie stock that has zero value. I've been tactically short KWEB for the last 70% (using monthly puts). Why it is trading above zero is a mystery to me. The funniest thing is the sponsors of KWEB, Krane Shares keep saying its about to bottom any day now. Just like the BOJ is about raise interest rates.