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:

• Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share with short interest of 19.4%. This is down slightly week on week. Short sellers don't appear to believe that lithium prices will improve meaningfully in the near term.
• IDP Education Ltd (ASX: IEL) has 14.3% of its shares held short, which is down slightly week on week. This language testing and student placement company is being impacted by student visa changes in key markets.
• Paladin Energy Ltd (ASX: PDN) has short interest of 13.9%, which is up again since last week. Short sellers continue to increase positions in uranium miners despite Russia suggesting that it could halt exports of the chemical element and reduce supply.
• Mineral Resources Ltd (ASX: MIN) has short interest of 13.4%, which is up strongly week on week again. This lithium miner is battling weak battery material prices.
• Boss Energy Ltd (ASX: BOE) has 12.7% of its share held short. This is up again week on week. It is another uranium miner that short sellers are targeting. They may believe that uranium prices won't be as strong as the market is expecting.
• Syrah Resources Ltd (ASX: SYR) has seen its short interest ease to 12.3%. This graphite miner continues to burn through its cash reserves due to weak battery material prices.
• Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest ease to 10.3%. Short sellers appear to believe that rare earths prices will remain weak for some time to come.
• Liontown Resources Ltd (ASX: LTR) has 10% of its shares held short, which is down slightly week on week. It is another lithium miner that short sellers are targeting due to low prices.
• Deep Yellow Limited (ASX: DYL) has 9.9% of its shares held short, which is up weak on week. It is another uranium stock that short sellers are targeting.
• Cettire Ltd (ASX: CTT) has 8.9% of its shares held short, which is down week on week. Tough trading conditions in the luxury products market and concerns over its business model are weighing on the online retailer's shares.