let the cashflow talk, page-9

Ok, i have heard that before, but why would an institution lend the shares?
If they thought the sp was going to go down, wouldn't it be better for them to sell the shares or not buy to start with.
In your scenario as applied to NCZ, what you are saying is that the recent price rise is due largely to some institution buying shares in order to then lend them to a shorter to sell and drive the sp back down.
To me this seems crazy from the institutions point of view as the value of their holding is about to go down. How do they benefit?

If they had held the shares for a long time and /or were only lending a small proportion of their holding for a short period I suppose it might be something they would do but otherwise why do it?