All articles tagged with #short selling
A jury found short-seller Andrew Left guilty of securities fraud, potentially facing prison time when sentenced, a verdict that compounds a years-long retreat of activist short-selling amid soaring stocks, meme trading, and rising regulatory scrutiny; experts say the ruling may spur tougher disclosures and caution among shorts and could impact market efficiency and price discovery.
A federal jury in Los Angeles convicted activist short seller Andrew Left of securities fraud for a long-running market manipulation scheme that earned more than $21 million. Left used public posts, social media and preplanned trading to move stock prices, presenting himself as independent while exploiting positions to profit from the price moves. He faces sentencing on August 31 and up to 25 years in prison. The investigation involved the USPIS and FBI, with FINRA assisting.
A U.S. jury convicted Andrew Left, founder of Citron Research, of securities fraud and related counts after a trial alleging he manipulated markets and misled investors for profit; he was found guilty on a securities-fraud scheme and 12 of 16 counts, acquitted on four, and faces sentencing on August 31 as he vows to appeal.
Famed short-seller Andrew Left was found guilty on 13 of 17 counts in Los Angeles for running a securities-fraud scheme tied to explosive tweets and reports intended to move stock prices, with prosecutors saying he earned over $20 million from 2018–2023. He faces decades in prison at an August sentencing and has indicated an appeal; the verdict is seen as a potential chilling effect on aggressive short-selling practices.
Activist short-seller Andrew Left, founder of Citron Research, was found guilty on 13 counts of securities fraud in a U.S. trial, accused of profiting from a long-running market manipulation scheme by taking stock positions, publicly commenting to move prices, and then exiting, while concealing his own trading. He was acquitted on four counts and faces sentencing on August 31. The case could influence how influencer commentary on stocks is treated under securities laws and affect retail-investing discourse.
Famed short-seller Andrew Left was found guilty on 13 of 17 counts for using social-media posts to influence stocks, with prosecutors alleging he earned more than $20 million from related trades; Left testified in his defense, but jurors convicted him of running a securities-fraud scheme and acquitted on several counts, with sentencing set for Aug. 31 and Left to remain free until then. Analysts say the verdict could chill short-sellers by raising the risk of federal charges over public commentary and rapid trading around it.
In the Los Angeles securities-fraud trial of Andrew Left, a retired firefighter testified that he turned about $110,000 from his 401(k) into cannabis stock CV Sciences after watching Left’s coverage, which later caused the stock to fall; he sold at roughly an $80,000 loss and then put remaining funds into Namaste Technologies (now Lifeist Wellness), losing about 80% of that investment after Left publicly criticized the stock. Another retail investor testified that Left’s actions seemed dubious, while the defense argued Left’s reports were accurate. The trial is ongoing.
Carson Block of Muddy Waters argues that AI-driven disruption will trigger broad market upheaval—potentially bigger than the 2008 crisis—reviving opportunities for short sellers as AI hype and economic dislocation shake US equities, with rising short interest and concerns about private credit signaling further volatility.
Bank of America’s latest data rank the 20 stocks hedge funds are most shorted; Moderna (MRNA) leads with about 18.3% of its float short, followed by names like SMCI, CHTR, APA, HPQ, BBY, WDC and MGM, illustrating broad bets against a wide mix of equities as the S&P 500 sits roughly 3% lower year-to-date.
Jim Chanos, a prominent short seller, is doubling down on his bet against legacy and modern data centers, arguing that their low margins, high capital costs, and rapid GPU depreciation make them poor investments, especially as profits from AI are expected to flow from chip production rather than data center infrastructure. He warns of a potential market contraction similar to the dot-com bust and highlights risks such as unprofitable AI companies and high debt levels among hyperscalers.
Michael Burry, known for 'The Big Short,' responded to Palantir CEO Alex Karp's criticism by dismissing Karp's comments and reaffirming his bearish stance, which was based on a large put options position worth $912 million. Burry's recent actions and comments suggest he may have closed his short position against Palantir, despite publicly criticizing the company's valuation and business model. The dispute highlights ongoing tensions between short sellers and company executives amid Palantir's significant stock gains.
BofA Securities advises investors to consider shorting bonds of hyperscalers like Amazon and Alphabet due to concerns over their cash flow, but recommends caution against shorting the broader AI market.
Famous contrarian investor Michael Burry has made a significant bet against AI giants Nvidia and Palantir, betting that their high valuations and history of bubbles suggest their stocks may decline, echoing his past successful short positions like during the 2008 financial crisis.
An anonymous trader reportedly made $88 million by shorting Bitcoin just 30 minutes before President Trump's surprise tariff announcement, which caused Bitcoin to fall 17% and triggered the largest liquidation event in crypto history, raising questions about insider trading and market manipulation.
Apollo Global Management found a way to short First Brands' debt despite being on a blacklist, using complex arrangements that avoided owning the loans directly. This maneuver was part of a broader decline in First Brands' financial stability, which is expected to file for bankruptcy after its debt value plummeted over half in two weeks due to failed refinancing and financial concerns.