Why the Short Squeeze Narrative for Stock-Linked Meme Coins Is Flawed

The narrative that on-chain stock-linked meme coins can trigger a short squeeze in traditional equity markets is fundamentally flawed. While traders have attempted to manipulate prices by hoarding tokenized stocks like HIMS and AMC, these tokens are merely IOUs rather than actual equity. Robinhood's tokenized stocks are backed 1:1 by real shares held in custody, meaning on-chain scarcity does not affect the underlying stock's liquidity. When on-chain prices deviate, authorized participants simply mint new tokens to arbitrage the difference, effectively neut