Chart Update, page-18092

Less shorting is never really a bad sign. To me, the lower the short interest goes, the more it is a sign that all future negative scenarios are largely baked in already. As the SP drifts lower, it is harder to find additional new downside risks that aren't already accounted for in the current SP. When the SP falls, shorters need to actually revisit their rationale and price targets, and lock in profits when the case for significant further downside doesn't stack up.

Personally, I think the biggest near term risk is that 4Q daigou recovery doesn't eventuate to the levels predicted, resulting in a further downgrade, but this was largely priced into the drop from around $10 to $8 upon interim FY21 reporting. Hence the short interest has waned since then and continues to. But after multiple downgrades, that is not necessarily a compelling 'spark' to excite skeptical buyers yet either (myself included). I reckon most people are awaiting a Q3 update.