3 ms·

If they got information from an insider, it could potentially be insider trading. Something somewhat similar happened when MedSec shorted St. Jude before publis

If they got information from an insider, it could potentially be insider trading. Something somewhat similar happened when MedSec shorted St. Jude before publishing some security research about some hardware: https://arstechnica.com/information-technology/2016/08/trading-in-stock-of-medical-device-paused-after-hackers-team-with-short-seller/ https://arstechnica.com/information-technology/2016/08/tradi... I don't believe that case was considered insider trading but I may be mistaken.

abstractbeliefs 8y ago
Buying a product, realising it's trash, shorting it, and then telling people why you shorted it isn't insider trading. The giveaway in this case is that MedSec/Muddy Waters were not in any way insiders, they were simply smart enough to investigate a company and find out it was overvalued before anyone else did, and then pointed it out when they had their financial ducks in a row to benefit from it.