All bets are off when it comes to Chinese stocks. I've seen them do some crazy shit,totally defy logic. All it takes is one HKD to not only end your trading career but ruin your entire life.
There is quite a difference between a USD 70 million stock and a USD 38 billion (where it traded not so long ago) stock with 12 employees, no revenue and some herbal roots that maybe used for ADHD. With the right position size there is zero percent probability that it will end your trading career and a very high likelihood of success. That is what trading is about. I would never short these types of stocks with a low market cap.
It WAS a small cap stock until 3 weeks ago when it went nuts. If I was a short seller I would have been spooked what it did thursday,big spike in price and volume. It'll probably work out for you but I'm personally way too risk averse to touch it.
I have put zdreg on ignore. I don't want to waste more time on him and feel sorry for him. He must have gone through some tough times.
3 weeks ago it traded at USD 78 with a market cap exceeding EBAY. Hardly a small cap. I would have loved to short at that level if there had been stocks to borrow. I would never go all in on a short position. However, there is quite a difference taking a limited short position in a stock that has 640-doubled over the course of three months with an extreme market cap and zero revenue and going all in on a short position in a small cap stock. I would never do the latter.
I'm talking about june 13 before it went nuts, and pre split. What was the stocks price and outstanding shares?