At the time of the fork any one who is short bitcoin on Kraken (and I imagine any other exchange supporting bitcoin cash) will be debited an equal amount of BCH.
example: margin sell (short) 10 XBT/USD = -10 BCH (short xbt, long usd)
Because of this, there is absolutely no way to break even off of a Bitcoin short, let alone profit. Essentially, this is going to force everyone who is currently short to close their position, which obviously means they have to buy bitcoin. All of this demand will almost certainly cause the price to rise, no?
In theory we should be seeing a pretty sizable short squeeze prior to the fork.
Or am I missing something big?
In my theory we should be like this :
Before splitting everybody will buying more Bitcoin,because after splitting they will get a clone from chain split and that thing can be sell in any exchanger that support it such as kraken,bitfinex and other exchanger.
For example :
We have 10
BTC in our cold storage,after chain split we will get 10
BTC+10BCC/BCH,and when everything is fine(we can do a transaction) i think more likely we will see another decline for BTC because some whales should be thinking how to pump BCC/BCH first before get out from that boat.
So,based on my statement above all that i can see is we will see another long squeeze because of BCC/BCH existance but i will not last long.