Short selling is fine as far as backed with real coins.
It's fine if there is a level playing field. What I'm suggesting is there is not one.
Secondly I'm sure you can imagine the potential problems if title is not granted when coins are short sold..
Btw apart BTCe which exchanges openly allow short selling?
I don't know. Do you think they will tell you if they are letting people sell your coins?
I'm suggesting it is happening because there is no rational for bots to keep pressuring prices down unless they are short. The way these bots are operating (at times) is the same MO as bots that are designed to see how low they can get the price of this or that financial instrument.
You just have watch the price action.
If you offer to sell they immediately jump in front. I you buy the price up a little, they immediately (and I mean immediately) tick the price down lower. They fill the screen with tiny sell orders. They continually sell small amounts as low as they can.
There is only one strategy this type of algorithm fits. Its the way computer trading systems are programmed to act
when they are short. Not at any other time.