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.
I don't wish to get into a discussion on the matter. in what way...
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Last
$2.36 |
Change
0.020(0.85%) |
Mkt cap ! $1.628B | |||
| Open | High | Low | Value | Volume |
| $2.33 | $2.40 | $2.33 | $1.160M | 491.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 5181 | $2.35 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.36 | 1873 | 1 |
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| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| PNV (ASX) Chart |