Level-headed, blunt assessment of Lake Resources, page-226

Hey RRX,

You mentioned that Shorts were again temporarily unavailable. I understand that the Shortman data is at least 4 days behind but I’m not sure what drives this unavailability considering the fact that the graph below indicates that a significant amount of shorts were closed 4-5 days ago? Is the unavailability something that is arbitrarily set by the Lenders? I would imagine that, once a significant amount of positions were closed and the shares borrowed were returned to lenders, that the availability would be better rather than worse?

I’m not sure how this aspect of “unavailability” works - specifically what/who controls the release of shares to be lent. It seems to be somewhat “manipulative” if Lenders hold back borrow to “let the share price pump” before they then release borrow to Shorters when they are satisfied that the share price has risen far enough….only for the Shorters to then “do their thing” with algorithmic trading to bring the share price back down again and maximise their return.

Any explanation of this aspect would be greatly appreciated.