Members of the Celsius community used Twitter to rally and fight against its token’s short positions. They do this while facing many challenges against the exchange such as bankruptcy and rumors that the CEO has fled or plans to flee the US. Several thousand tweets can be found on the company’s social media. These tweets include their positions on the token and exhorting others to do the same thing.
One twitter user said that the CEL community is warring against short positions. The strategy of short selling is one where investors earn money when a share/token declines. Shares are borrowed in large amounts and sold immediately. Investors then purchase the same at a lower price. On the flip side, a short squeeze is a phenomenon when investors purchase large amounts of a shorted share/token. This leads to a price rise and results in short sellers losing money.
Per reports, the Celsius community has done this before as an effort to carry out a short squeeze. Just in June 2022, members of the CEL community came up with a plan to ensure recovery – this plan was an unofficial one. The idea was to force a short seller to rethink their positions and drive the token price higher. In July 2022, the company put out a statement saying that it filed for Chapter 11 bankruptcy and reorganization. This happened just after the crisis in which users could not withdraw their funds from the trading platform.
Right after the filing, lawyers defending the company argued that all of the registered users (1.7 million) had signed away their rights to these digital assets. According to one lawyer, crypto that was deposited in accounts to earn and borrow was not a user’s own. It belonged to the company.