I still strongly believe that the current long trend of price fall is closely related to shorting. Off course no elevating news and general lithium sector performance only helping the shorters but if the stock shorting was not applied, the SP would have been at completely different level. I've just read an interesting note in The Aus Business News about German stock Wirecard shorting. It is related to a different reason for shorting but I find it educating:German and European financial market watchdogs ordered a ban on short-selling shares in payment processing firm Wirecard, sending the stock price soaring after a weeks-long rollercoaster ride over fraud allegations.
In Bonn, market supervisor Bafin said in a statement that it issued a decree “forbidding the establishment of new net short-selling positions in Wirecard AG shares or to increase existing net short-selling positions” for two months.
Short-sellers borrow shares, sell them on the market and later buy them back. If the price of the shares has fallen, the difference in price is profit for the short-seller, making the practice in essence a bet on falling stock prices.
In a separate statement, the European Securities and Markets Authority (ESMA) backed Bafin’s move, saying Wirecard’s woes were “a serious threat to market confidence in Germany” to which the ban was an “appropriate and proportionate” response.
