Ann: ABB FY22 Results - Investor Presentation, page-30

this can also backfire on the shorters big time if the market starts to move up. They become forced buyers in a short squeeze and if there isn’t enough sellers then it can add a lot to share price very quickly. it’s why part of the reason the market moves are so volatile at extremes. There is no limit to how much you can lose when shorting a stock as opposed to going long, if you buy a $10 stock you can lose $10. If you short a $10 stock then the downside is unlimited if it keeps going up and you cant cover it. Not a game for the average punter.

if you’re a top fundamental analyst and you choose one company (to win or lose) in a particular sector then shorting can be used as a hedge against wider market moves to single out the performance of said company but I doubt it’s a topic discussed on HC often.