What absolute nonsense. They aren’t shorting because they know something that everyone else doesn’t. They are shorting because they know that they can keep dropping the price in the sell queue (with no cost of capital) and the mere act of them doing that causes buyers to back down because why pay more than you need to. If the price is rising then you drop more of your borrowed shares in to the queue and so on.
Anyone can cause the price to fall by simply offering a share for sale at or below the bid. The bid then drops accordingly. You can drive price the other way without the need for huge cash reserves and the willingness to line wipe up the ladder.
The mechanics of shorting allow a price to be pushed downwards with very little effort.
Short data on WBT, page-1739
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Last
$2.30 |
Change
-0.010(0.43%) |
Mkt cap ! $434.5M | |||
| Open | High | Low | Value | Volume |
| $2.33 | $2.34 | $2.30 | $1.096M | 476.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 501 | $2.30 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.31 | 14000 | 1 |
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| Last trade - 16.10pm 29/07/2024 (20 minute delay) ? |
| WBT (ASX) Chart |