> Highly shorted stocks are some of the most volatile ones. I'm not convinced by this argument. * Is the volatility caused by short selling or does volatility

> Highly shorted stocks are some of the most volatile ones. I'm not convinced by this argument. * Is the volatility caused by short selling or does volatility attract short sellers? * Is it possible that short selling is actually reducing the volatility of very volatile stock? Australia banned short selling after financial crisis. The result was increased volatility in stocks, less trade and larger spreads.