By using an options strategy called “conversion” which include a synthetic short position that is completely hedged with a long position of stocks, hedge funds can utilize this strategy to short a downtick and dodge the short sale restriction (SSR) rule.
Trading software used for stocks and options trading illustrations include Tastyworks by Tastytrade, thinkorswim by TD Ameritrade, Webull, Interactive Brokers, Robinhood, and Etrade.
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Disclaimer: I am not a financial advisor; this is NOT financial advice or an offer to buy or sell stocks and/or options mentioned in this live stream and/or video. Consult your financial advisor.