It'll all get bought back in about ummm... 31 days.
Actually if they were smart they would have filed with the IRS a certain way last year where they can sell losers and buy back any time they want. The 30 day rule is not in this type of filing. If I remember right it's called Mark to Market, and please correct this anybody who knows for sure.
"Mark to market" is (in this case, for this reference) a method of accounting for stock/security gains and losses which is more in line with the way a frequent trader works. The trading dept of a Goldman Sachs or Lehman almost certainly works in this fashion; an individual trader has to apply to use the method a solid year or more in advance (eg; you cannot decide retroactively that you were a daytrader last year and use the method) There are a number of implications, not all of which are clearly beneficial or detrimental. For one, I believe you're correct, that the "wash sale" rule need not apply. Also, I think the $3K limit on capital losses/yr doesn't apply. One who elects this method may also cut themselves off from cap gain treatment on stock gains. Also, I think the M2M election is irrevocable. As usual, there is a highly readable/sarc IRS publication detailing the particulars.