Because when a large organised group of shorters combine they can create a false reality by all selling their units at once dumping the SP in what otherwise may have been a stable SP prior. The dump creates fear. Some sell to de-risk. Sooner or later the SP recovers because it was never truly sold down on genuine fundamental basis or a fair supply/demand matrix. The shorters by then have already bought back and made their money. The broker makes their fees and the retail investor is left at a loss wondering how this happened at all.
Artificial market dynamics which is ultimately unfair to regular investors.
Probably not that hard to understand.
LYC Price at posting:
$6.74 Sentiment: Hold Disclosure: Not Held
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