Oops I just realised that the pass the parcel technique (borrowing more to repay already borrowed shares) doesn't really do anything except for prolong the need to eventually buy back on market to ultimately wind down the short position. So I guess whatever price they actually sell those borrowed shares for, they are hoping/expecting the price to drop below this at some point in the future... But that is complex too, because the very act of short selling them will likely trigger stop losses and therfore provide available cheaper shares on market!
Maybe it's a really quick game in those cases where there really is no fundamental reason for the sp to drop - just a game of forced fluctuation for pips.
Probably.
Grrrr...
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Shorters... Good luck!, page-78
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