ADTX closed up 150% today. Pretty impressive.
I have a theory. I think it points to a pretty interesting storm of events that could lead to an epic short squeeze. I want you to prove me wrong.
ADTX had some crazy momentum leading up to the delist. The bull case, in short, is ADTX is a dumpster fire, but contains trapped value in one of its subsidiaries, Ignite Proteomics. They were just appraised to the tune of $150m by an upcoming merger with Copley Acquisition. In fact, yesterday, [$AZN just got approval](https://finance.yahoo.com/healthcare/articles/astrazenecas-enhertu-wins-eu-nod-135200961.html) in the EU for the use of Enhertu on HER2+ solid breast cancer, the exact thing Ignite's assay is used for. Seems pretty valuable.
But I digress.
ADTX was one of the most shorted stocks in history, and for good reason. It's a dilution machine, toxic lenders, no revenue. Perfect short target. If you look at the short volume leading up to the delist, it hit 1.4b. With a b. Why is that interesting? Well, if you look at the [FTDs](https://fintel.io/ss/us/adtx) that were just released by the SEC, you can see it got kinda high, and kept on rising as it diluted to a higher and higher float. The last date on the FTD graph is June 12th, and by then it was hitting multiple millions of FTDs a day. I can only imagine that the trend continued.
The short volume went wild starting from the 17th. Hundreds of millions, then billions of short volume.
**But the dilution stopped on the 17th when they hit their 1b cap.**
This all happened while the stock was on the SHO list. Which means there's a reduced Trigger Threshold, between T+3 and T+13 (I'm not sure of the exact state the stock was in, if rule 204 was active, etc.).
**There are potentially tens to hundreds of millions of naked shares out there, with a ticking clock to buy them back up on OTC with a bunch of bag holders with thirsty appetites, all the while excitement is brewing on X, Stocktwits, and indeed reddit.**
If retail starts moving the ticker at the same time these naked shares are force to cover on OTC where liquidity is low, and a bunch of bag holders are thirsty for that sweet $1 payoff, we could see a squeeze of epic proportions over the next 2 weeks.
Edit:
Further evidenced by the increase in short volume ratio while the price is going up:
https://preview.redd.it/z7sa0qxzgiah1.png?width=785&format=png&auto=webp&s=56b5e62fbf2788f83a0deaa516c22a63edd9eb24