At the heart of it Shkreli was robbing Peter to pay Paul. He took some of Retrophin investors profits and used it to pay back his investors in MSMB. Those prof

At the heart of it Shkreli was robbing Peter to pay Paul. He took some of Retrophin investors profits and used it to pay back his investors in MSMB. Those profits should have gone to Retrophin investors. From the perspective of the hedge fund, this is a pretty bad spot to be in. Retrophin investors will be looking to be made whole for the money Shkreli gave to MSMB investors. I would imagine that this is how Ponzi schemes start.