Thought the Reference 'Stop Leaks' was to MovieStocks that were Declining in Value (referred to by some as 'Slow Bleeders').
If MovieStock (XYZ) is Declining in Value and it is held in a LONG Position, there are three (3) Options:
1. Hold the LONG Position & continue to Lose Money;
2. SELL the MovieStock & Avoid further Losses; or
3. SELL & SHORT the MovieStock Avoiding further Losses & making Profits on its Decline.
Thought the Reference 'Sudden Market Deflation' was to a large Collection of High-Priced MovieStocks that were suddenly in Decline (something that happened numerous times in NOV & DEC - something that some attributed to SELL-OFFS in order to obtain Funds to BUY High-Priced IPO's such as (STAR8).
If I have misunderstood the Query, please let me know.
Best Wishes.
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