$XTALPI(02228.HK) Everyone should think carefully. When the stock price was over HK$13, the company issued convertible bonds, and institutions were willing to take them on interest-free. There must have been tacit cooperation behind this. These funds, while taking on the debt, also collaborated to borrow shares for short selling, deliberately suppressing the stock price.

At the current price of over HK$8, the short sellers have no reason to close their positions as the profit margin is far from sufficient. Their ultimate goal is to drive the stock price down to the HK$6 range.

When it hits this low point, a large number of retail investors and margin traders, unable to withstand the panic, will cut their losses and exit, dumping their shares at rock-bottom prices. The short sellers can then buy back the shares cheaply to return them.

They coordinate with the company's capital operations while harvesting the blood-stained shares from retail investors—a perfectly synchronized plan. Considering the company's weakened core business and its blind cross-border investments, this short-selling arbitrage logic is entirely plausible. Falling to HK$6 is not accidental but a pre-planned outcome.