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JP Morgan analysts noted that US regulators may temporarily ban short selling activities due to the banking crisis.

JP Morgan analysts believe US regulators could target short selling to avoid contagion amid the growing banking crisis.

With several US banks having recently collapsed, industry players have argued that short sellers are scaring people into thinking the crisis will ensnare more banks.

JP Morgan analysts noted that this argument could temporarily force regulators to halt shorting activities.

Short selling is a form of investment that seeks to profit from a fall in the price of a security.