Here are the 10 most shorted ASX shares this week

Short sellers are betting on these ASX shares sinking from current levels…

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At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

  • Flight Centre Travel Group Ltd (ASX: FLT) continues its long run as the most shorted ASX share after its short interest rose to 12.8%. Weak revenue margins appear to be a concern for investors.
  • Betmakers Technology Group Ltd (ASX: BET) has seen its short interest reduce to 11.9%. Competition and cash burn concerns seem to be weighing on this betting technology company's shares.
  • Megaport Ltd (ASX: MP1) has seen its short interest rise to 10.2%. This network as a service provider's slowing growth may have attracted short sellers.
  • Core Lithium Ltd (ASX: CXO) has short interest of 9.9%, which is up week on week. Continued weakness in spot lithium prices has been weighing on investor sentiment.
  • Sayona Mining Ltd (ASX: SYA) has 9.5% of its shares held short, which is up week on week. This also appears to have been driven by fears that lithium prices have peaked.
  • Liontown Resources Ltd (ASX: LTR) has short interest of 8%, which is up week on week. As well as lithium price concerns, cost blow outs at the Kathleen Valley Lithium Project have caught the eye of short sellers.
  • Lake Resources N.L. (ASX: LKE) is the fourth lithium share in the top ten with 7.8% of its shares held short, which is up week on week. A well-known short seller is targeting Lake Resources due to doubts over its technology and project funding.
  • Zip Co Ltd (ASX: ZIP) has short interest of 7.4%, which is up strongly week on week. Concerns over major regulatory changes could be partly behind this high level of short interest.
  • Pointsbet Holdings Ltd (ASX: PBH) has 7.3% of its shares held short, which is flat week on week. As with Betmakers, competition and cash burn concerns appear to be behind this.
  • NextDC Ltd (ASX: NXT) has short interest of 7.1%. This may be due to concerns that economic conditions could weigh on this data centre operator's performance.

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group, Megaport, PointsBet, and Zip Co. The Motley Fool Australia has recommended Betmakers Technology Group, Flight Centre Travel Group, Megaport, and PointsBet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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