When a stock is over valued (like Tesla) fair enough. They should be sold short and hard.
However I've seen many FTSE stocks especially in the single digit P/E's (like this) that have been shorted down and in some cases - with confidence shot and investors pulling out - have even folded. Also ask yourself why the spike in price happens first then the RNS follows confirming a bid, sometimes hours or even days later - the big boys learn before the ordinary folk - it's called insider trading.
As for those who still doubt how rogue and corrupt short sellers can be look at Computacenter as a recent example. Shares rocket 15% in 2 days last week on NO news. Everyone perplexed. Are they about to receive a bid?
Answer - a hedge fund reduced their short by 0.05%
FFS!
Happens time and again especially on the FTSE.
Short sellers suppress and place a heavy clamp on the SP.
Why does reducing a short by such a small amount cause the SP to rocket by 15%?
It is blatantly obvious to me that short sellers like Wace are tanking the SP each afternoon. Day after day. London price should match the JSE price, or be within 1% or so.
Why is it sometimes as much as 5% below where it should be?
That is a failure of regulation = FCA not doing their job.