Posted on Jan 31, 2021 10:24 AMUpdated Jan 31, 2021, 1:46 PM
In recent days, short sellers have been the subject of a veritable vendetta in the financial markets. An army of American stock marketers animated by a desire for revenge, for some enthusiasts of the GameStop brand, a video game distributor targeted by short sellers, have decided to kill them for having bet on the rout of the business. This horde of retail investors has succeeded against all odds in spreading the dust on Citron Research, one of the most famous short sellers.
“Short-sellers” have always been criticized by companies. Already, Dick Fuld, the boss of Lehman Brothers at the time of its fall in 2008, wanted to “tear out their hearts then eat it”. “ They are value destroyers “, Said Elon Musk, the founder of Tesla, long targeted by them. As for “activist” short sellers, they arouse hatred. They too are betting on the future decline of a security, but rather than proceeding quietly and staying in the shadows, they stage their battle to convince other investors to sell their securities.