Banks will short stocks regardless of possible future rules
Banks are going to need to obfuscate their shorts following the Reddit raid on shorters.
AI could be designed to trawl through Reddit via their API looking for post-activity trading the stock the bank is shorting.
The AI would report the stock and Reddit posts to the trader in charge of the short.
The trader would easily be able to buy the stock increasing the value and dumping or postponing the short attempt in favour of traditional Market Cap gain.
If a stock is attempted to be shorted by the bank and Reddit finds out, Redditers buy the stock, the stock increases, the bank buys the stock, the stock increases, more Redditers and other people buy the stock, the bank attempts short revision two, the bank sells the stock, the stock plummets, the bank buys the stock before the completion of the short-sale.
The bank does not need to own anything to attempt to short; the people in the middle can buy and sell the stock to enhance the short.
Buying low, selling high, buying low before the hand-over can provide two-bounds of profit from the short.
A good short is a single-bound.
A great short is a double-bound.
A fantastic short is a triple-bound.
MaX saw double-bound shorts but have not seen a triple-bound short.
The next step is to build on the Reddit community to divise a an open-source AI detect shorts
This would be relatively easy to acomplish with access to Bloomberg AI and direct connection to the markets of choice for shorters (NASDAQ, etc.) and the stock exchanges (NYSE, LSE, HKEX, etc.)
Elon Musk is an outspoken critic of shorting given his company, Tesla was subject to rampant shorting.
Elon is an ideal candidate to lead such an open-source charge against shorting along with his AI connections and experience.