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The price of any financial asset is set by the marginal buyer or seller. For companies capitalised at less than a few hundred million that almost certainly means private investors who are, shall we say, folks who cover a spectrum of intelligence. The bond markets are inhabited by far smarter fellows.
For shorters, this is a nil brainer. Rarely does a company explicitly tell you that its shares are 75% overvalued but that is exactly what has happened here.
