Short sellers trying to force a Market capitulation After I have defined what a bear raid is (look below). Let us define what a market capitulation is to understand how short sellers are trying to force some to sell in panic so that they can cover their shorts (literally and figuratively). The posts on this board are mostly from short sellers trying to plant the seeds of fear, uncertainty and doubt (FUD technique is part of the bear raid strategy)
When prices in a market fall, the first instinct of many investors is to hang on and wait for values to recover. But if a slide goes on long enough, fear of deeper losses can outweigh such hopes. When enough investors reach that breaking point and sell, the result is called market capitulation.