@Gajet"...If there was no shorting, people would still analyse...

@Gajet

"...If there was no shorting, people would still analyse companies and make a decision based on numerous factors. The decisions made by investors to either buy or sell would be sufficient IMO for price discovery. ASIC and ASX can still monitor closely for pump and dumps etc.. to prevent out of control share price rises.."

Yep! Exactly!
The whole "liquidity" argument to support Shorting is B0$locks and just gives various entities an opportunity to stack (smother) both the sell and buy side with volume to control price and drive lack of transparency.

Lack of liquidity can be a good thing. Tells investors something could be on the nose or at least to question and research it!
Sell side increase and/or Buy side decreases - price comes down for good reason, based on Demand Economics 101.
As you say, ASIC can see the pumps and dumps clearer too.

The daily Market share price reflects a closer approximation to the current risked/calculated/fair value of the company at that point in time and any SP delta over time (up or down) is due to the Board/CEO and Team executing their day jobs - more transparent measurement of what you are buying.