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) continues to be the most shorted ASX share with short interest of 19.5%. This is down week on week again. Short sellers are sticking with this uranium producer despite plenty of positive industry news in recent weeks.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest increase slightly week on week to 15.4%. Short sellers are also betting against this uranium miner despite a number of tech companies committing to nuclear power to support their artificial intelligence plans.
• Mineral Resources Ltd (ASX: MIN) has short interest of 14.6%, which is up week on week. This mining and mining services company has been battling weak commodity prices.
• Pilbara Minerals Ltd (ASX: PLS) has seen its short interest rebound to 12.8%. Short sellers have been loading up on the lithium miner's shares after Chinese spodumene prices dropped to multi-year lows.
• Liontown Resources Ltd (ASX: LTR) has short interest of 12.6%, which is down slightly week on week again. This has also been driven by weak lithium prices.
• IDP Education Ltd (ASX: IEL) has 11.5% of its shares held short, which is down week on week. Short sellers will have been pleased to see this student placement and language testing company's shares crash 53% last week following a very disappointing update.
• Deep Yellow Limited (ASX: DYL) has 10.9% of its shares held short, which is down week on week again. It is another uranium stock that short sellers have been targeting.
• Polynovo Ltd (ASX: PNV) has 10.6% of its shares held short, which is flat since last week. Short sellers appear to believe the medical device company's shares are overvalued based on its growth this year.
• Cettire Ltd (ASX: CTT) is back in the top ten with short interest of 10.5%. This has been driven by concerns that the online luxury products retailer could struggle with trade tariffs and changes to the de minimis threshold in the US.
• Lifestyle Communities Ltd (ASX: LIC) has short interest of 10%. This appears to have been driven by concerns that negative media coverage is causing headwinds for the retirement living developer.