Completely makes sense. Thanks MarkS By holding b
Post# of 148190
By holding borrowed shares, the potential short seller is paying interest (loosing money). If he is holding the borrowed shares and not selling them/shorting, then he must be.....
1) anticipating a rise is share price, so he is really trying to "time" the rise and the turn around. If the share price has gone up, he is taking a chance to now sell his borrowed shares, because why did the share price go up, and why should it stop going up.
2) anticipating bad news
The situation is quite different if the illegal manuerver of illegal "coordinated shorting" where many folks time where they all short/sell their borrowed shares at the same time after a rise. This facilitates their "timing" of when the rising price will turn and drop, especially if it is a hedge fund will a lot of cash to do some large short trades.