Your Enron example is worthwhile for the opposite reason you intended: there was a massive short position against Enron too, and corporate management accused th

Your Enron example is worthwhile for the opposite reason you intended: there was a massive short position against Enron too, and corporate management accused the shorts of all manner of conspiracy, and the shorts were right. "People invested deeply in something" describes the management of fraudulent companies far more than it does short sellers. There's a quote from David Einhorn's book (that I think he attributes to Warren Buffet) that is something to the effect of: "When you're short a fraudulent company, you'll be surprised at the ends they'll go to defend themselves. Because to you this is 5% or whatever of your portfolio, but to them it is everything."