Because now they're on the hook for 4 times the amount of what they're short ...
... at 1/4th the price.
"So ... I shorted at $400, and I put that CASH in my account. Now I can buy it back at $120? Cool ... Wait! The split means I can buy it back at only $30? Ohhh ... poooor meeee ... I will cry all the way to the bank!"
... at 1/4th the price.
"So ... I shorted at $400, and I put that CASH in my account. Now I can buy it back at $120? Cool ... Wait! The split means I can buy it back at only $30? Ohhh ... poooor meeee ... I will cry all the way to the bank!"