For shorting to work as a “pure” instrument, their sale shouldn’t be able to drop the price. The short should be placed at market at the bid price and then we see where the chips fall. These are borrowed shares which have already had their purchase effect on the price, so there should be no effect of them on price when they are sold into the market. This would be a true measure of their price discovery nature, rather than being able to force the price down with the effects you have mentioned.
GXY Price at posting:
75.5¢ Sentiment: Hold Disclosure: Held
