Galaxy is a cheap takeover target, page-14

Asked whether it had received feedback from shareholders as to why they were lending their securities to short sellers, Galaxy said its status as one of the biggest pure-play lithium stocks on the ASX was making it a target."We believe Galaxy is hit hardest because we have a highly institutionalised register that makes borrowing stock easier.

So the reason GXY is the most shorted stock has everything to do with its high institutional ownership. The share price would likely be a lot better therefore if there were more retail holders. And yet the company has treated its retail holders like shit.