The spinoff can be considered the 'spark' for a short squeeze, the share structure can be considered the 'fuel'. How so? Well you have 4 beneficial owners of Sears Holdings (SHLD) shares, holding 84.7% of the outstanding shares (106,443,237 outstanding). When you combine that with the current short interest on the stock, you have more than 100% of the outstanding shares controlled by the 4 owners and the borrowed shares, a molotov cocktail in my humble opinion. One can only guess how small the float is, and this is without taking in consideration any other holders less than 5%..ect.
I will have more on Sears Holdings (SHLD) in the coming days... Happy Trading!