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 after its short interest rose slightly to 25.7%. Short sellers are betting heavily against the uranium market.
• Paladin Energy Ltd (ASX: PDN) has seen its short interest ease week on week to 16.3%. This uranium miner has been struggling this year with the temporary suspension of its operations and the subsequent scrapping of its guidance.
• Mineral Resources Ltd (ASX: MIN) has short interest of 13.3%, which is up slightly since last week. Short sellers aren't giving up on this mining and mining services company's shares despite their 75% decline over the past 12 months.
• Deep Yellow Limited (ASX: DYL) has 13.2% of its shares held short, which is up week on week. Deep Yellow is yet another uranium stock that is being targeted by short sellers. They may believe that investors are too optimistic on uranium price forecasts.
• IDP Education Ltd (ASX: IEL) has 12.9% of its shares held short, which is down week on week. This student placement and language testing company has been struggling with student visa changes.
• Pilbara Minerals Ltd (ASX: PLS) short interest of 12.4%, which is down slightly week on week. Lithium spot prices have been in free fall recently due to increased supply from China and Africa.
• Liontown Resources Ltd (ASX: LTR) has seen its short interest increase again to 12%. This has also been driven by falling lithium spot prices.
• Lotus Resources Ltd (ASX: LOT) has short interest of 12%, which is up sharply week on week. It is the fourth ASX uranium stock in the top ten.
• Lifestyle Communities Ltd (ASX: LIC) has 10.5% of its shares held short, which is up week on week again. Negative media coverage has been weighing on this retirement communities company.
• Polynovo Ltd (ASX: PNV) sneaks into the top 10 with 10.2% of its shares held short. Investors appear disappointed with the medical device company's growth given the lofty multiples its shares trade on.