1. Short selling means that investors think that the price of a stock is too high, so they choose to borrow the stock, sell it and wait for the stock price to fall before buying it back, thus making a profit. The emergence of short selling often brings some pressure to stocks, because a large number of selling by investors will lead to oversupply. At this time, many insecure stock investors will follow suit, causing the stock price to fall further.

Second, short selling often accelerates the stock price decline because of market panic. Declining liquidity, capital flight and large-scale selling will all lead to increased market insecurity. At this time, stock investors often feel worried and confused, thus triggering a panic mechanism, and a large number of selling will lead to a decline in stock prices. Short-selling institutions will expand this opportunity, make bigger "short positions", and further promote the decline of stocks on the basis of profit.

Third, the emotional factors of market participants are often an important reason for stock price fluctuations. The emergence of short-selling institutions will often increase the range of market sentiment changes. In the market downturn, shorting will often accelerate the stock price decline and enter a vicious circle of self-reinforcement. On the contrary, when the stock price can continue to rise, short-selling institutions may choose to recycle the sold shares, thus moving against the market. Therefore, the appearance of short-selling operation not only reflects the bearish attitude of the market towards a stock, but also changes the emotional pattern of the market and realizes further manipulation of the market.