The funds using computer algorithms are playing this due to the low volume, probably for any real traction, it needs good news. I always notice, they can trade say 30k up 10 cents and drop it 15 cents on a few hundred shares as they sacrifice them to accumulate back lower when they lower the price.
The other thing that is currently going on if you look at the daily FINRA data is that either it is shorted first to push it down and then slowly covered as few shares are being sold lower or they let morning buying push it up and they short into that and then cover as the price drops off with the lower volume. The data shows that most of the daily volume is shorting and covering.
Seems like the risk - reward is not worth it at these levels for shorting. Any news and the PPS will agressively move upward, especially since nearly 90 percent of the outstanding shares are owned by insitutions or insiders.
Absolutely, but they likely cover the same day they short or the long term shorting data would change more than it does. Most news is before or after the bell, and they use it mostly to hold the price when accumulating or distributing. If news happens, they can respond quick and profit from the increased money flow to negate any small short position.