Shorting is not only normal if there is dilution but I think the ratio is 3:1 in favor of shorting when dilutive shares are known to be in the pipeline.
This is what's called "toxic financing" and most stocks that get hit with one of those look like a city on sea level after a Cat. 5 hurricane combined with a tsunami get through with them.
The worst part of it that toxic financiers work hand in glove with the company they are "financing" to get maximum return on their investment and the company is usually more then obliging in many ways at the expense of their own shareholders
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.