I don't wish to get into a discussion on the matter.
in what way does a short seller mitigate the damage?
To answer your question, look at the example of HKD provided by @westsurf. HKD IPO'd at $7.80 (from the prospectus), now trading at $1679.00, and given past experience of this Chinese broker, the company is likely worth $0.00.
The float has been locked by the broker. To short sell HKD intraday, the borrow costs $113/share. To hold the short overnight costs x4 to x7 of $113/share depending on the broker. At this rate, it is uneconomic for short sellers to short, so the price gets manipulated up to $1679.00 in the absence of short sellers. Anyone that bought on the way up and doesn't sell, they'll get crushed, scammed, fleeced. If this market mechanism is unfamiliar, I can't help you.
PNV - Chart, page-14262
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Last
$2.34 |
Change
-0.030(1.27%) |
Mkt cap ! $1.616B | |||
| Open | High | Low | Value | Volume |
| $2.41 | $2.43 | $2.32 | $5.953M | 2.536M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 29039 | $2.33 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.35 | 16702 | 3 |
View Market Depth
| Last trade - 16.10pm 30/08/2024 (20 minute delay) ? |
| PNV (ASX) Chart |