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Someone who bought and expected to make a profit, but reached a point where they hit their stop loss or just wanted to get out the trade at any cost and couldn’t bear to wait longer. Quite possible a redditor who frequents r/wallstreetbets and YOLOed in.

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They're not really making any money when they close out their short position. The money came when they first opened the short position and sold the shares. When they close they just lock in how much they're going to net off the position.

I don't think it makes sense to say you "made money" when you still have an open-ended liability active.

I kind of get it but it's the only point when money enters the books directly from the short sale and after that they're free to do whatever they want with it.

Whether you buy or sell in the market you’re almost certainly trading with a market maker, not some other individual.

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