Short sellers anticipate a fall in the share price. They don’t ruin a company per se. If a company fails it was going to fail anyway. An exception might be if a company is distressed and the short selling causes it to breach debt covenants or fail in an attempt to raise capital- but then it was in trouble to start with. If it’s a financially sound company and if short sellers oversold the company then it would just get swamped with buyers. Plenty of people losing their shirts like to blame short seller conspiracies because it feels better to be a righteous victim than admit having made a mistake.
AL3 Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
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