Shorts are trapped, page-59

I think your suspicions of Regal being the driver of the short position are reasonable. As you have said, this long/short activity is a clear biotech sector strategy they have profited from handsomely in recent years. As there are so few institutional Biotech investors, I guess they see certain companies with a significant retail base (weak handed bed-wetters) as prime targets. Evidence suggests they are right.

Even if they are not taking all the short position, they are short facilitators through their prolific lending operation. While I personally have no issue with shorting per se (morality is not a legal investment precondition), I do get bent up when I see them underwrite a placement at 20%+ discount to the VWAP and lend/short the shit out of it for the next 12-18 months. I simply do not understand why BOD's keep coming back to them for money when they know this will eventuate!