So, an organized financial crimes society, otherwise known as...

So, an organized financial crimes society, otherwise known as Credit Suisse (and yes – they have multiple convictions and track record of illegal behaviour on the markets, which makes them actual criminals), borrowed almost 12M shares last week (11. and 12. September), at the time MYR price was hovering just above 40c. Which seems to be unfortunate timing for Credit Suisse (and occasion to celebrate for most of us), as with price spike after that, they would be sitting on a paper loss of almost $2M.

Based on shorts reported to ASX, they haven’t fully covered yet, as total gross shorts volume reported since, is still short (pun intended) of what they borrowed – and they’re not the only one covering.

This brings two possibilities:

- Credit Suisse realized their initial analysis of MYR results is wrong, and started covering when market moved in another direction. With such a big short position, the panic and short covering rally was assured, especially once Wilson’s move is outed;

- They haven’t covered yet, but were possibly instrumental in hyping up to sell borrowed shares high. Now they’ll need to cover, which means they’ll do what they do best – manipulate market and bring MYR price further down, so they can cover.

In either case, it looks like they’re in breach of ASIC regulations, as they reached substantial holder interest of over 5% on 12. September, and reported that just on 18. September. They were obliged to report in two working days. It's also possible that they haven't reported all short sales to ASX - why would they bother with commoners stuff such as short selling provisions of the Corporations Act?

So Credit Suisse might now face the usual harsh penalties from market regulators – a slap with a wet lettuce or, for especially heinous behaviour, maybe even with a limp celery branch.