Let's say I shorted 1 share of Twitter at the current price of $50.44, and tomorrow Elon Musk successfully bought out the company for a price of $54.20.
What happens to my short position? Does it simply close out, and I lose the difference between the sale price and where I need to buy back, at $54.20? This would be a loss of $3.76. Or do I need to pay more? Does the position forcibly liquidate, instead? Thank you!
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