Treasury Wine Estates Ltd (TWE.AU) experienced a significant intraday decline of 5.05% on Friday, as the stock faced substantial selling pressure during the trading session.

The sharp drop comes as recent data from the Australian Securities and Investments Commission reveals that Treasury Wine Estates has become the second most shorted stock on the Australian bourse, with 14.38% of its total share registry reported as short positions. This represents a notable increase in bearish sentiment toward the wine producer.

Short selling activity, where investors borrow shares to sell them with the expectation of buying them back at a lower price, typically exerts downward pressure on stock prices as it increases selling volume in the market.