None of these explanations is actually 'short selling'..... cross trading and attacking bids on low volume is not shorting, its price manipulation. Also it doesn't work if retailers are all buying shares on high volume like this stock, unless volume is fake. Again I don't get how shorting can drop this shares price. #$%$. How does shorting drop shareprice.
Ok buddy here's how it works. When shorts short, they INCREASE share supply. When there are 130million shares short, and the float is 500 million shares, there are actually 630 million shares in people's long accounts. SHORTING ARTIFICIALLY INCREASES TOTAL SHARE SUPPLY. So you have that many more longs getting agitated when price is manipulated southbound and they sell into the frenzy and feed the price declines (while allowing criminals to swooop up shares). When shorts cover, they are DECREASING share supply, making shares "dear" and amplifying upward movements.
So, shorting INCREASES share supply, and allows for easier manipulation downtown.
Covering DECREASES share supply allowing for explosive movements uptown.
Part of manipulating share price downtown is to increase share supply by SHORTING.
The hedge funds sell stock to each other in coordinated attacks...shares move between them and the selling pressure lowers the price...see Cramers video on You Tube. Then they pay analysts like Canaccord to yap on and create fear.
They use computers to match accounts and pool shares between themselves. Hedge funds sell between each other while lowering the bids. NO OWNERSHIP CHANGES. They just ping-pong shares between themselves creating an ILLUSION that scares all the little people who don't konw #$%$ is going on. They do this on the way up for trash like AMZN, or NFLX, to convince people to buy, and they do it on the way down when they want to sell. They divie up the "booty" and move on to the next game in town. THEY'VE BEEN DOING THIS FOR CENTURIES!!! BBRY is just tooo obvious given the relentless and never-ending negativity for a $30 stock.
one way is: they wait for low volume which means the bids are thin. they put out a larger sell order(s) limit down below the lowest bid. this instantly takes the PPS down like .10-.20 for example. now the price is lower, but buyers dont always rush in. So they try to buy back the shares, and probably a few more (they have all those old shorts to cover). They usually make at least some money. its not 'fair' of course but thats what you can do when you have tons of money and skills. So who is losing to them? Daytraders with stops too tight and weak longs.
You have the right answer Damfino.
They sell into weak bids and can drive the price down quickly for little cost; then they buy as much as poosible while it is still low, which covers their sale and some of their longer term short.