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many people have made heaps of money these past days shorting grpn. let's wait and see what happens by the time the 180 day lock-up expires.

the risk with shorting grpn today is the small free-float given that it's easy to create demand with small amounts of capital. it's a no brainer that when the lock-up expires this stock will fall like a brick.

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If it's a no-brainer, why aren't short sellers flooding the market and driving down the price to the post-lockup price?

there is a limited amount of free-float which you can borrow against. the counter-party needs to purchase that stock, and if a large number of investors want to short sell the stock, they are indirectly increasing the demand. a good example is how hedge funds lost eur30bn back in 2008 trying to short sell overvalued volkswagen stock. i.e. Porsche selling part of its VW stake to ease a short-squeeze

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