It is frequently claimed that short sellers target a specific stock in the hopes of driving its price down so it can be covered at some point in the future. I know there are cases of manipulating prices up intending to sell into rising prices. People have been convicted in these pump and dump schemes. But I have never heard of even one case where someone or group was tried and convicted of manipulating prices down by concerted selling. I havenât even read an article describing a real-life example, whether or not there was legal action. It may sound like commonsense that short sellers are purposefully selling in order to drive prices down, but my experience is that covering the short position is much more likely to drive price up faster and result in losses. This strategy can only work if a significant selling panic is induced with sufficient momentum to allow a profitable cover. This isnât a trivial exercise. Itâs easier to push prices up than down, although even that is probably going to be losing exercise unless you follow a classic pump and dump strategy (find a penny stock, build interest by tips, rumors and repeated buying and selling among confederates until sufficient momentum exists to exit.) After all, anyone is a potential buyer, while only owners can sell. I believe short sales occur because price is expected to go down, not with the expectation that the selling itself will drive price down and make a profitable trade. The market is going to go where it is going to go. No one or group is powerful enough to stand in its way. A lot of people shorted the tech bubble, me included, without slowing its rise. Does anyone know of a concrete example of short selling with the express purpose of driving price down?