The first few times Hidenburg published a report, this would have been true. But now they can publish something and stock will crash just because of the fact they published something. Market is largely sentiment driven in the short term and retail is not going to go do in depth research. And this short term decline is enough for short seller to crash.
Take this report for example. A lot of their claims are not very substantial. Like the lyrics of a hip hop song are not the evidence they think it is. I didn't see a lot of evidence of the fact that 70% accounts are fraudulent either.
The first few times Hidenburg published a report, this would have been true. But now they can publish something and stock will crash just because of the fact they published something. Market is largely sentiment driven in the short term and retail is not going to go do in depth research. And this short term decline is enough for short seller to crash.
Take this report for example. A lot of their claims are not very substantial. Like the lyrics of a hip hop song are not the evidence they think it is. I didn't see a lot of evidence of the fact that 70% accounts are fraudulent either.