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![Mullen_Army Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1794068123500572672.png) XRP 🅧 Army [@Mullen_Army](/creator/twitter/Mullen_Army) on x 1980 followers
Created: 2025-07-21 21:08:01 UTC

🔍 Understanding Reverse Splits & Short Positions – Lucid Example

$LCID has 385.5M shares shorted at $2.80, totaling a massive:
💣 $XXXX Billion short position

Now imagine a 1-for-10 reverse split happens:
➡️ Share count drops: 385.5M → 38.55M
➡️ Price jumps: $XXXX → $XXXXX
➡️ Total value? Still $1.08B… but here’s the twist ⬇️

📉 Why It Matters:
🔒 Higher share price = higher margin requirements
💸 Brokers may demand 30–50% collateral vs. XX%
🧯 Less liquidity post-split = harder to cover
🎯 Institutions may step in where retail shorts fall off

🧮 If margin jumps from XX% to 40%:
– Pre-split required collateral: ~$270M
– Post-split required collateral: ~$432M
❗️That’s a $162M increase just to hold the same position.

🔥 Bottom Line:
A reverse split doesn’t change the fundamentals — but it makes the short position riskier and more expensive to maintain.
Stay sharp. Don’t just watch the price — watch the mechanics.

#LCID #ShortSqueeze #ReverseSplit #Stocks #Options #EVstocks


XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947403210685354029/c:line.svg)

**Related Topics**
[$108b](/topic/$108b)
[drops](/topic/drops)
[stocks](/topic/stocks)
[$lcid](/topic/$lcid)
[positions](/topic/positions)
[reverse](/topic/reverse)
[lucid group inc](/topic/lucid-group-inc)
[stocks consumer cyclical](/topic/stocks-consumer-cyclical)

[Post Link](https://x.com/Mullen_Army/status/1947403210685354029)