Shorting is simply a tool used to create market activity (one of...

Shorting is simply a tool used to create market activity (one of many used by the BEOT). And, all investors/ market participants (either knowingly or unwittingly) generate market activity for the brokerage firms/ trading houses to line their pockets with fees.
As such, we get times where market activity defies logical explanations - creating situations where the market is either undervalued or overvalued. We are at one of those points in the market (with respect to PLS and the broader lithium sector) where the current stock valuations have been overly impacted by the sheer volume of shorting activity.
Eventually, this situation will be resolved and we will see valuations pushed to relatively normal levels and even possibly extreme overvaluation on the upside (when the market goes too far the other way).
Until then, we must endure this anomaly and be brave with our investment decisions. We should also look for possible catalysts that will change the markets expectations and behaviour and capatalise on them. The pending Aust budget could just be one of those catalysts??