The problem is that you are posting it here under ocv. Your...

The problem is that you are posting it here under ocv. Your theory as to what can happen, although correct in theory is not what has happened in ocv's case.

Did directors have margin loans? Yes

Was OCV shorted? Apparently although only for a short period of time.

Did the decline in shareprice make loans due and payable? NOOOOOO!!

So although shorting can be used to achieve other purposes, it wasnt in this case. Nothing that shorters have done in this case has really contributed to the position that ocv is in. It was not caused by shorters, it was not caused by margin lenders. It has been caused because the compnay went broke. End of story.


Your theory I would think is more analogous to the situation of ABC Learning. There the directors had significant holdings secured by margin loans. It was also shorted and it caused the shares owned under the margin loan to be sold (further decreasing the shareprice). As all of this was occuring, there were rumours that they were at risk of having the company loans called in due to the falling shareprice (I believe this was denied by the company or they always stayed above the requisite level).