That's what happens when there are 64 million shares short and only 52.3 million shares outstanding...
From ZeroHedge
Briefly and in plain English I would like to explain this to you. The VIX, otherwise known as the 'fear' index has been a major tool of the PPT and Associates in supporting the stock market. A low number is indicative of little fear while a high number shows more volatility. In an effort to support equities, this index has clearly been suppressed in price by selling more shares short than even exist. (Does that sound familiar to gold and silver investors?) This now poses a VERY BIG PROBLEM!
Plain and simple, with more shares short than exist, a short squeeze for the ages has been set up. Knowing a big move upward in the VIX is also synonymous with lower stock prices, one can extrapolate (along with many other technical and fundamental weaknesses) a market crash of epic proportions will happen whenever this short squeeze is actually covered. The "squeeze" has already begun with the VIX running up to 31.8 as of this writing. The "crash" has also started worldwide if you have been paying attention. In my opinion, the short covering has the potential to push the VIX index to all-time high prices. Greater than 2001, 2008 and even 1987. Can you guess what that do to averages like the Dow Jones, S&P 500 and the Nasdaq?
Standing watch