But for the part where the current valuation was widely viewed as much too high. It does smell bad. I agree with how you framed it. I’m really grateful you wrote it that way as it makes it very clear how this feels deeply corrupt. I suspect this is a corner case which could bankrupt a broker though.
How can it be too high when there was a know market to buy them? Short seller positions are public, and they had already agreed to buy the stock by such and such date.
