u/aporter0131 ·
Reddit — r/smallstreetbets
· June 02, 2026 at 20:37
· ⬆ 17 pts
| View on Reddit ↗
No analysis available.
Score17
Upvote %100%
▶ Full Post Text
In addition to the SI, CTB, DTC, Volume, etc.. tomorrow LFVN will also be subject to the SEC Rule 201. Here are details about the rule:
How Rule 201 Works
* **The Circuit Breaker:** The restriction triggers if LFVN drops by 10% in a single trading session compared to the previous day's closing price.
* **The Restriction:** Once triggered, any short-sale order must be priced **above** the current National Best Bid (NBB).
* **Duration:** The restriction applies for the remainder of the trigger day and the entire following trading day.
\*\*This makes the setup **EVEN BETTER** if you can believe it. One of the best short squeezes in recent history is upon us and getting juicier.
How this makes the squeeze even juicier:
This restriction enhances a short squeeze by introducing the following dynamics:
* **Limits Downward Momentum:** Short sellers cannot aggressively "slam the bid" to force a stock’s price lower. They are forced to post non-marketable orders on the ask or wait for upticks, effectively removing a primary source of heavy selling pressure.
* **Creates a Floor for the Stock:** By preventing short sellers from accelerating a steep decline, the rule acts as a stabilization circuit breaker, allowing long buyers and short-covering rallies to establish a firm bottom.
* **Increases Execution Risk:** Because they are not allowed to execute their shorts aggressively on a downtick, short sellers are severely limited in their ability to suppress the stock while it is attempting to rebound.
* **Accelerates Buying Pressure:** As the stock's price naturally moves upward during a squeeze, short sellers under this rule cannot quickly establish new short positions to hedge or control their losses. This lack of downward-pushing supply frequently causes the price to run up much faster.
I know I have been blasting LFVN down everyone's throat.. but it's out of love. I hope this information finds you LFVN investors well and creates some excitement for those on the fence. See you all tomorrow for a big day of green.