If a company retires its convertible debt, the delta-neutral hedge is shattered and the math changes instantly.
Conversion Ratio: 0
Delta: 0
Required Short Position: 0
To return to 0, funds are forced into the open market to cover every share they shorted against that debt. When a company retires billions in convertibles, it triggers a mandatory, mathematically enforced de-hedging event.
When that forced buying hits the market, the price has nowhere to go but up.