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CLDR is still allowed for shorting after losing ~2% on Friday, probably also because of this, when on Thursday it was dropping ~11%...

As far as I know there should be a rule which does not allow shorting after 10%+ price loss. What is going on here, Am I miss something?

Proofs:

limited stocks: https://www.nasdaqtrader.com/trader.aspx?id=ShortSaleCircuitBreaker

short volumes: http://shortvolumes.com/?t=CLDR

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You are correct. The Alternative Uptick Rule does not allow a stock to be shorted if it has fallen 10% or more in a day.

CLDR dropped 9.02% on Thursday (from $10.75 to $9.78). That's why it did not appear on the NASDAQ's Short Sale Circuit Breaker list (your link) and shorting continued to be allowed.

Your second link to The "short sale volume percent" has no relevance to this.

  • Thank you for your answer, so only closing prices matters? Because CLDR was more than 10% minus for sure through the day! So this is not clear to me: sec.gov/answers/shortrestrict.htm "The alternative uptick rule is designed to restrict short selling from further driving down the price of a stock that has dropped more than 10 percent in one day compared to the closing price on the previous day." It was dropped more than 10% for sure through the day! My second link was about to proof that CLDR is still under short target... – czupe May 25 at 18:03
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    As I understand it (and I won't swear to it), short selling is halted intraday once the stock drops 10%. If it retraces to less than 10%, the ban is lifted. It is only implemented overnight if the close to close drop is >= 10% and then it remains on for one trading day. – Bob Baerker May 25 at 19:27
  • Ah, I see, so probably the ban was just lifted after it went below 10%, this actually makes sense. So bad that there is no clarity regarding to this and I feel there are possibility for manipulation as well... You can just try to make it less than 10% if it is close with 1-10 share transactions... Thanks again for the answer Bob I mark approve your answer. – czupe May 25 at 20:46

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