I fail to understand who will be shorting this stock and in such...

I fail to understand who will be shorting this stock and in such a big way. Most of the shareholders have been in this company for years and no way they will lend their shares for shorting.

the only plausible scenario may be (I may be totally wrong here)

1. There are outstanding convertible notes which can be converted to shares (approx 20 million shares can be issued upon conversion) at any time.
2. Maybe some of these thought about locking in profits as they can always give notice to the company to convert their notes into shares. This usually takes between 1 to 2 days.
3. However, the company is bound by ASX restrictions and only issue a maximum of 15% of issued shares in any one year.
4. The 15% capacity has already been exhausted (after conversion of $79k of notes on 18/11/2014) and company can't issue more shares till after the AGM on 25 nov
5. If above is the situation with short sellers, then they are trapped for the time being as they have to settle within 3 days .
6. This will make price quite volatile for the next few weeks