Understand the way in which shorts operate , when they Buy stock they don't immediately close out their short position . Their net short position goes down considerably because they have boxed a certain % of their short. If underlying stock continues to move higher chances are at some point they will close out their short . But if momentum to upside does not follow through they are less motivated to close out short and can if they choose turn around in a very aggressive strategic manner sell long stock to maintain their short. I do believe shorts have played Procera currency in this technique. They have traded around their short position in a technique that serves their best interest. There even is a chance that strategically when Procera did not Pre-release / come clean around Stifel Conference that they created the perception of disappointment / institutional selling . The same way 3 days before Q3 earning release last Nov they blitzed PKT for 3 days creating a very real perception of a earning miss.
Are there any distinctive footprints between the shorts coming out to play vs institutional shedding of share?. My first inclination is to believe that shorts don't have the same amount of resources to play with but, then again, it doesn't take that many shares to create a stampede. If shorts were responsible for the large volume of three days ago, their direct contributions to volume could have been relaively small.
Do institutions play the same game of seeding the stampede or do they more typically just slowly shed shares?