Looking at the shorting of ABC on the 26th Feb.

March 11, 2008

ABC – Caught by the short and curlies!

Tuesday, 26th of February 2008 is a day Eddy Groves would rather forget.

But Spark doesn’t forget. With Spark you can replay the last 30 days trading activity.

This video graphically depicts Eddy’s nightmarish morning at 60x speed. Each minutes trading activity is represented every second. On Monday ABC’s stock closed at $3.74, within seconds of opening on Tuesday morning it traded as low as $1.15.

A combination of margin calls and aggressive short selling by hedge funds decimated the stock which ultimately cost Eddy the company he founded 20 years earlier.

Watch the pre market trading activity before the market opens and then when ABC goes into suspension around 11am. The blue bar in the chart indicates the expected opening price and moves in response to the changes in the bid and offer queues.

Note – video quality has been reduced to make it web accessible.

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