Brainchip Short Discussion, page-4

I think the answer to that is likely that those  short sellers are seeing opportunities for PROFIT.

And PROFIT is the answer to @mapp ‘s query the other day   on why an index fund

- locked into a company unless it is removed from the index - would ‘sabotage’ its’ position by lending an ever increasing number of shares to short seller​

https://law.stanford.edu/wp-content/uploads/2023/04/04_Mitts_Final-compressed.pdf

Perhaps the fund doing the self  ‘sabotage’  doesn’t want to be in Brainchip. Can’t leave till BRN is  dropped from index.
But it can liberate funds to spend elsewhere by loaning to short sellers on whatever terms it chooses.
And perhaps its’ analysts don’t see any positive near term future? An escape route?

(the link above to a paper by young ‘gun’ professor Joshua Mitts who according to Reuters https://www.reuters.com/business/ho...me-scourge-activist-short-sellers-2022-03-18/ has been making waves on Wall Street with his investigations/analysis and is worth a quick scan, or deeper probe for anyone interested)​

Anyway, re the funds:
I remember being invested in a lithium project called Altura.
The index fund happily dropped out at about 10 or 11c.
Why ‘happily’?
Because it took a substantial loss per share on its’ entry price but not as great a loss as those who sold at 2c or had their funds tied up in a long administration until the company was rebirthed.

Re the shorters:
Money … money … money

Caveat Emptor?

cheers