Shorting doesn't cause bankruptcies, companies go bankrupt because they're poorly run. Shorters simply profit on identifying these poorly run companies.
They don't always get it right though, in fact they're often wrong, and when they're wrong it provides an incredible boost to the share price. They're forced to buy back large amounts of shares, often all at once during a rerate which can cause gains to be significantly magnified. I certainly agree with you that LTR will be one of these stocks that they're wrong on, and that when the moment comes that they're proved wrong, the "squeeze" will be quite a sight to see.
As an example of how they're often wrong, look at how much shorters lost in 2023:
Shorting doesn't cause bankruptcies, companies go bankrupt...
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Last
$1.28 |
Change
0.035(2.82%) |
Mkt cap ! $3.042B | |||
| Open | High | Low | Value | Volume |
| $1.25 | $1.28 | $1.24 | $7.366M | 5.870M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 66 | 101260 | $1.27 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.28 | 88820 | 39 |
View Market Depth
| Last trade - 15.38pm 07/05/2024 (20 minute delay) ? |
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Last
$1.28 |
Change
0.035 ( 2.47 %) |
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| Open | High | Low | Volume | ||
| $1.25 | $1.28 | $1.24 | 2119731 | ||
| Last updated 15.57pm 07/05/2024 ? | |||||
| LTR (ASX) Chart |