Fair point, but if you look at the most shorted stock this time last year (MTS.AX), it never went bust, but went higher. So the short crowd is not always right - maybe some smart money starts a rumour so the shorts jump in and push the price down, then the smart money starts taking a long position at a discount, and squeeezes them in the process. See https://www.wise-owl.com/stock-analysis/most-shorted-stocks-on-the-asx-april-2016
