Came across this in my research, I continue to learn from the recent turn of events and want to be as informed as possible. A few articles I came across with the recent increase in short selling.
1. A ban on covered short selling 2008:
https://asic.gov.au/about-asic/news-centre/find-a-media-release/2012-releases/12-233mr-asic-reports-on-gfc-short-selling-restrictions/#:~:text=In%20September%202008%20ASIC%20took,to%20strengthen%20their%20financial%20systems.
This indeed happened in in the 2008 when world economies struggled. It is debatable as to where the golbal economy may be by the end of the year. However, with the current fundamentals of the company and its performance v the tech market(s) in general, this is worth noting, albeit a very minor possibility imo.
2. A natural short squeeze:
https://corporatefinanceinstitute.com/resources/capital-markets/short-squeeze/This article is well worth reading, I drew a few comparisons to what we may be seeing here with Weebit, especially unexpectedly good news(not just news we think we know is coming) and the recent increased short interest in Weebit.
Let's just hope that when Weebit enters its next index( I would like to think they will) they are on the ball and have strategies in place to limit the seemingly now inevitable short selling instos conduct. Legal or not.
And finally the most controvesial article I came across, certainly worth the read again - discussing the practice of naked short selling and the outrage resulting in artificial illegal short squeezes in the other direction such as that of Gamestop.
https://oilprice.com/Energy/Energy-General/Naked-Short-Selling-The-Truth-Is-Much-Worse-Than-You-Have-Been-Told.htmlFascinating stuff, let's hope holders simply hold strong and we see Weebit to the success it deserves, without any of the nonsense. The fear whipped up is a known psychological factor used by instos to enable the short sell as their own hedge. Very smart, and how do they and their conterparts make their cash? Again, through fear, sucking the cash from your local Joe who is oblivious to the practice.
As just another average investor, who is now a little more in the know, I feel even more resolved to continue to hold tight (with much much sharper eyes might I add).
Best of luck!
DYOR and IMO
(20min delay)