Here’s my longtime fave BBBY end-game hypothesis, one with a fair amount of humiliation for the fraudsters and SHFs:

• After all the legal effort, BBBaby is carved out or spun off;

• Former BBBY shareholders are given shares in the new BBBaby (holding) company, as a bonus for going through hell the past 6 months;

• Former BBBY shareholders also receive $ from any legal settlements related to BBBY fraud investigations;

• BBBY shareholders retain shares in the old company as well;

• CUSIP and/or Ticker is maintained, so shorts are forced by the court to close, buying up shares in an empty shell company in order to close billions of short positions, closely watched by the SEC. BBBY price skyrockets; shareholders sell shares in the old entity at their leisure, then the price seems satisfactory.

New company and GS are well clear of the media noise and lamentations of the SHFs.

This theory has the poetic justice that I see in other elements of this play (GameSTOP, Bed Bath & BEYOND, etc). This sequence would really underline the BEYOND in Bed Bath and Beyond, and meet RC’s primary goal of delighting customers (in this case, diamond-handed shareholders).

Whaddya think? Could it happen? Why or why not?