This looks like Bit-pay Merchant Solutions (bull) just caught pirateat40 (bear) in a short squeeze. Very nicely done.
Short squeeze?
There's no Bitcoinica. Where would pirate have been shorting?
In finance, short selling (also known as shorting or going short) is the practice of selling assets,
usually securities, that have been borrowed from a third party (usually a broker)
with the intention of buying identical assets back at a later date to return to that third party.
BTCST, obviously. He is hundreds of thousands of Bitcoins in debt to his creditors, at ~3000% yearly, Bitcoin denominated interest.
But! He can short sell the Bitcoin borrowed from his lenders, "with the intention of buying identical assets back at a later date to return to that third party".
What can go wrong?
(Or he can short sell their assets without any such intention, for that matter. He's got a pretty cool setup.)
