I don't buy it. We have seen too many instances of the share price reaching into the $.70's and see huge piling on of shorts. The ECU "market" is being pushed around. Only BIG entities can employ millions of shares, and since the amount of shorting becomes significant compared to daily volume it is effective. Not because of the undefinable "market" but because of the intentional application of pressure to achieve the desired effect. This is manipulation, not a free market.

Also you cannot see what goes on at all times. I'll believe that if you can tell me who sells any stock naked. Naked shorting is illegal, yet as common as dirt.It has been found EVERY TIME theSEC has gone looking for it, yet they do nothing to stop it. The SEC is not stupid, they are managed themselves, to the point of ineffectiveness against the biggest criminals. Think of JPM stealing $ Billions and paying a few million in fines with no one going to jail.

MBA programs are full of "efficient market theory" and time and again it is shown not to work in the face of manipulative practices. Companies have been destroyed by shorting. It is not a benign friend of markets, but a tool for those who think if they suround the practice with enough disinformation it will be accepted. Hence the notion that shorting is GOOD because the shorts have to eventually cover.Markets should reflect honest buyers and sellers, not institutions big enough to push the markets around.

Also much of the trading today is by computer. They are brainless algorythms. If a stock goes down to a certain level (as in shorted to that level) it is sold by the computer! Period.

I believe in many instances, poor sentiment is the RESULT of illegal practice.