There is a difference between the daily rate of shorting, which is listed by the ASX, and the total cumulative and uncovered shorting which are still outstanding, and that part is covered by ASIC.
Those uncoverd shorting have to be eventually covered by the shorters. But, the way they usually handle/cover that part if they are not willing to buy on market, is by way of borrowing that amount of shares from a willing lending party (Usually an Insto, or a Superannuatio fund) at an agreed fee.
After those shorting has been removed from that ASIC listing, the shorter can then hand the shares back to the lender and the merry go round will restart all over again.
One have to keep in mind that, in the majority of cases, if not all of the cases, the Big end of Town, with those very big and deep pockets, always win.
Cheers.
ESG Price at posting:
60.0¢ Sentiment: None Disclosure: Held
