RE: Reddit crew29 Mar 2021 07:12
Market makers don’t short these type of illiquid aim stocks. I tried to explain this years ago here on this board but was abused for suggesting it
Mm’s will borrow stock not in the belief that the price will deteriorate but to fill large orders. That’s why there are such big price swings especially after large buys like the GDXJ are filled. They (mm’s) borrow stock from our accounts (HL/Barclays etc) and fill large orders and will then drag the price down to obtain those shares to back fill these orders
This is NOT a short and thus does not need to be reported to the market as such, however the mechanics of it are much of the same