@Bin198144, I'm not sure you understand what can happen. If you use a broker, the good ones ring their clients regularly and advise them to get into this or to get out of that. On the other hand some with a vested interest may encourage some clients to short, to act as a catalyst to get the ball rolling when they dump their own stock too or cap it. Its all about timing and co-ordinating a few pathways and putting the word out among networks to create the drop in momentum. Fear is a greater motivator than greed. The market makers know where your stops are set if you trade with them and if it is in their interest they will press those stops. The market is not snow white and based on integrity. It is a competition/adversarial system with rules that can be circumvented unless someone make a challenge or complaint, then it costs to do that.
Shorting is legal, but it is not the big picture, its part of massaging the system to extremes to take greater profit in trade and commission with turnover. Without turnover the shares sit and less profit for market makers and of course less tax for the government. It won't change. Just identify if it is market noise or genuine lack of future development or revenue for a firm. Most shorting is applied to business cycles and of course seasonal cycles e.g. in a micro scene waiting for drilling to commence. Or of course waiting for an offtake agreement or finance etc. Most shareholders are impatient because they see time is money or a better opportunity, and the market makers play on that attribute. By looking at shorting data you can consider the motives of sellers and your position. It is because some longer term holders don't understand the factors and go on TA analysis it only heightens their anxiety. You only have to look at the comments here. The other thing that happens is that market makers scrape the sentiment data from sites like Hot Copper and put that on a data base to map. That also assists in determining when sellers are exhausted while they as market makers are accumulating; and when they can make their next move to mark up the stock after testing the market to push up the trend when they again disperse of accumulated shares.
I see it as fool hardy when holders actually say, "sell" on Hot Copper. The scrapers may be doing that, otherwise people are just silly and lower their value if they get out. There is a lot in this game to learn and plenty of bear traps.
