Shares of Mineral Resources Ltd (MIN.AU) plummeted 8.65% in Monday's pre-market trading, as the mining and mining services company faces mounting pressure from short sellers and industry-wide challenges. The sharp decline comes as the company's short interest climbed to 12.6%, placing it among the top five most shorted stocks on the Australian Securities Exchange (ASX).

The increase in short interest reflects growing skepticism about Mineral Resources' near-term prospects. Analysts point to a combination of factors weighing on the company, including weak commodity prices, which have been impacting the broader mining sector. Additionally, Mineral Resources has been grappling with operational challenges, further eroding investor confidence in its ability to navigate the current market conditions effectively.

Adding to the company's woes are recent controversies surrounding its founder, which have cast a shadow over its corporate governance. While specific details of these controversies were not provided, such issues often lead to increased scrutiny from investors and can contribute to negative sentiment. As Mineral Resources continues to battle these headwinds, the market's reaction suggests that investors are increasingly cautious about the company's outlook, leading to today's significant sell-off.