Tim Sykes was not bragging about shorting CYDY, he was bragging about buying on the dip and selling on the pop after. He tries to sell his system of watching for a perfect trading pattern to happen. He and his group bought in the $4-$5 range and sold in the $5-6 range for a day trade. They did not short.
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Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.