Bloomberg breaking story.
“Department of Justice has opened a CRIMINAL probe into the practices of hedge fund and research firms that rely on short selling.”
Do hedge funds trade stocks targeted by research firms prior to the publications of reports? (DUH).
Prob will seek if there’s any improper coordination or market abuses.
JPM and VandaTrack
Example: Technoglass fell 41% when Hidenberg suggested they used fake revues and had ties to the cartel.
Citron Research bailed on GameStop short after GME explosion - stopped publishing short reports.
SEC vowed to “protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws.
investingstocksstock market
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