johnm

Don't Be Fooled - Short Selling Restrictions Do Work

It could very well be that the short selling of financial shares is not a
bear raid or some deliberate attempt to dirve down the share price but
simply someone's hedge for a large CDS position.
Unfortunately this type of hedges generate a negative feedback loop
if the CDS notional is large (shorting stock to hedge against the probability of default depresses the prices increasing the probability of
default therefore needing more shorting).
The move to regulate the CDS market should fix this to some extent.