Market manipulation on ASX, page-11

Yes. You have two potential sellers vs. one buyer. Market impact is a downwards movement, especially with high FUD and low liquidity. Short seller profits by triggering stop losses and forcing other market participants into margin calls.

What leads the lender to retract the shares from the short seller? The wish of the lender to sell the shares himself (apart from special situations when collateral might not be enough).
So you have the short seller buying on market to return the share and the lender sells it. Market impact is nearly neutral.


Only thing to counter it (apart from maybe really extensive share buyback programs or huge dividends) is retail sticking together. A Gamestop situation.
Shorters know how most humans tick: a quick, opportunistic gain for yourself (by trading; by selling early / having weak hands; by jumping on board the short seller train) seems to be a better option than sticking together with some other anonymous retail people from the internet to get the huge but uncertain profit in the future (= prisoner's dilemma).

With 613m shares sold short (as of last week), it could be so easy when people would just hold onto their shares, spend a few dollars to buy at ask price (increase 1% of your holding might be enough if everybody does it) and when some bystanders would join in.

One can always dream! (that Australians get [their sh*t] together)