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 with short interest of 20%. Short sellers appear to believe that the market is too optimistic on the outlook for uranium prices.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest lift to 17.4%. This is another uranium stock that short sellers have been loading up on.
• Mineral Resources Ltd (ASX: MIN) has short interest of 13.3%, which is up slightly since last week. This mining and mining services company's shares have crashed deep into the red this year due to concerns over its leadership and high debt levels.
• IDP Education Ltd (ASX: IEL) has 12.3% of its shares held short, which is flat week on week. This student placement and language testing company's shares crashed almost 20% last week after the release of a very poor half year result.
• Syrah Resources Ltd (ASX: SYR) has short interest of 11.8%, which is down slightly since last week. This graphite miner's shares have been under significant pressure for years. This has continued over the past 12 months due to weak graphite prices and the declaration of a force majeure at its Balama operation in Africa.
• Pilbara Minerals Ltd (ASX: PLS) short interest of 11.7%, which is up week on week again. This lithium miner continues to struggle with weak lithium prices and short sellers don't appear to believe anything will change in the near term.
• Deep Yellow Limited (ASX: DYL) has 11.5% of its shares held short, which is up week on week. This is another uranium stock that short sellers are targeting.
• Star Entertainment Group Ltd (ASX: SGR) has short interest of 10.8%, which is down week on week. This embattled casino and resorts operator could go bust this month if it doesn't find additional funding.
• Karoon Energy Ltd (ASX: KAR) is a new entry in the top ten with short interest of 10.6%. It is unclear why short sellers are targeting this energy producer, with most leading brokers tipping its shares as a buy at present.
• Liontown Resources Ltd (ASX: LTR) is back in the top ten with short interest of 10.3%. This lithium miner's shares are down over 50% since this time last year. Short sellers don't appear to believe the pain is over.