At the start of each week, I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share by some distance with short interest of 25.6%, which is down slightly week on week. Short sellers aren't giving up on this uranium stock despite it rising 70% since this time last month thanks to a better than expected quarterly update.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest ease week on week to 16.4%. It is another uranium share that short sellers are targeting. Though, as with Boss Energy, its shares are up 50% in a month thanks to its quarterly update.
• Mineral Resources Ltd (ASX: MIN) has short interest of 13.5%, which is up since last week. Concerns over this mining and mining services company's precarious balance sheet have been partly behind this. Though, management recently ruled out the need for a capital raising.
• Deep Yellow Limited (ASX: DYL) has 12.5% of its shares held short, which is down slightly week on week. It is yet another uranium stock that is being targeted by short sellers.
• Pilbara Minerals Ltd (ASX: PLS) has short interest of 11.9%, which is down slightly week on week again. Short sellers have been targeting this lithium miner due to lithium spot prices falling significantly due to increased supply from China and Africa.
• Liontown Resources Ltd (ASX: LTR) has seen its short interest soften to 11.9%. This also appears to have been driven by falling lithium spot prices.
• IDP Education Ltd (ASX: IEL) has 11.7% of its shares held short, which is down week on week again. This student placement and language testing company is battling tough trading conditions caused by student visa changes.
• Lotus Resources Ltd (ASX: LOT) has short interest of 10.4%, which is down week on week again. This is the fourth ASX uranium stock in the top ten.
• Lifestyle Communities Ltd (ASX: LIC) has 10.3% of its shares held short, which is down week on week again. Short sellers appear to believe that this retirement communities company's underperformance will continue in the near term.
• Polynovo Ltd (ASX: PNV) has 10.2% of its shares held short, which is flat week on week. Slower than expected growth from this medical device company appears to be behind this short interest.