..hate shorts....today we learn why theyr good, page-86

Remove shorts from the market, you reduce selling pressure but you also reduce the buying power when the shorts cover. Without shorts on days of panic you will have an excess of sellers as people panic. Volatility increases as there arent as many buyers to prevent serious falls in stocks.

Like with BNB and MQG etc when there was panic?

They just kept selling!

Short selling was able to largely change BNB's capability to do business - they relied in very real terms on their share price to be able to write new scrip and for their credit rating.

The hedge funds knew this - remember the scuttlebut going around on the day when they were trying to push them below the $7.50 mark. The cheaper the price goes, the less they are worth, which means the price has to then go lower!

Legitimate holders would not do this with their stock under normal circumstances - there was no driving need for them to sell out, as while the share price remained at around the $10 level, the shares were worth more. However as the share price dropped through shorting, the companies intrinsic value also dropped.

This was calculated.

We see people exiting MQG today - but there is only about 10% of the volume! Shorts covered yesterday which led to a high side extreme across banking stocks in particular (just look at ANZ's high yesterday) - if shorting was available every man and his dog would have tried to get a piece of ANZ at $20.40.