RE: Gold in Africa3 Mar 2018 13:50
In a word: yes.
Ascent Resources was shorted by Utilico last year (they even diclosed it - was about 1.2%)
I know people who shorted UKOG at 7p. Went up to 11 which caused some panic, but soon dropped back.
Harvest Minerals in 2016 - were due to raise money around 8p so was shorted like crazy. Not sure whom: maybe Miton? Anyway, the raise was cancelled and the price spiked to 24p as positions were covered in desperation
I don't think it happens that often, but (hypothetically) say if you were a big fan of the company and the assets but knew there'd be a dearth of news for a bit. Volume drops off and it only takes 1 Million borrowed shares (under 0.5%) or so to force the price from 30ish to 20ish, where you then buy back, having made a killing, and ride up as the newsflow increases.
Personally, I hope that's the case. Shorts closing often precipitates a huge rise.
Course, it could be just what Supergut says: the market wants the 76% retrace.
Either way: this is now the 52-week low and the MACD has just crossed so it's time to buy IMO.