Electra Battery Materials Corp (ELBM)

[DawgTrading]

Market Maker (hedge funds), and it could even be the ones putting price targets out there (wainwright etc.)... they sell shares short doesnt matter if they borrowed them or not properly and settled the trades. For them it raises cash, and since the volume isnt enough for them to worry about covering, they wipe out accounts as they can stay solvent much longer than retail usually can.

There is also the shares that were bought in the private placement, they could just be selling those on the market at a loss even to recoup some cash from those placements, and then theyll have plenty still to sell later if/when the price recovers.

Look at the short interest jumping higher now they have no immediate need to cover those.

08/15/2023 1,672,407
07/31/2023 1,355,779
07/14/2023 719,534

https://www.nasdaq.com/market-activity/stocks/elbm/short-interest