Pilbara Minerals Ltd (ASX: PLS) saw its stock price plummet 8.79% in Monday's pre-market trading, continuing a troubling trend for the lithium miner. The sharp decline comes as the company faces mounting pressure from short sellers amid persistent weakness in lithium prices.

According to the latest data from the Australian Securities and Investments Commission (ASIC), Pilbara Minerals now ranks as the fourth most shorted stock on the ASX, with 13% of its shares held short. This represents an increase from the previous week, indicating growing bearish sentiment towards the company. The heightened short interest suggests that investors are betting on further declines in Pilbara's stock price, which has already fallen by a staggering 65% over the past year.

The increased shorting activity and Monday's sharp drop reflect broader concerns about the lithium market. Short sellers appear to be wagering that lithium prices will remain depressed for an extended period, potentially impacting Pilbara Minerals' profitability and growth prospects. As the company grapples with these market headwinds, investors will be closely watching for any signs of a turnaround in the lithium sector or company-specific developments that could alter the current bearish outlook.