I'd assume there's rules against this sort of stuff, perhaps falling under bigger items like aiding and abetting in a crime. And I'd definitely assume it'd be

I'd assume there's rules against this sort of stuff, perhaps falling under bigger items like aiding and abetting in a crime. And I'd definitely assume it'd be considered insider trading. But it's a very clean way. There aren't really any direct traces to you as you didn't enter into any actual agreement or conversations with anyone. You'd just dump information one sided, that's pretty easy to do anonymously. And if you look at the volume of trade on eBay, it'd be very unlikely they'd be able to pinpoint who was the source of the hack based on trading alone, if they even look for a link between traders and the hack in the first place. And even if they can reasonably say it might be you cause you just shorted $250k out of the blue (still puny volume for a stock like this), there'd be no way to prove anything else. The biggest issue I'd say is having been tracked by server logs while finding out about the security leak. As for whether it's a good plan... I wouldn't take it myself if I was evil. First it's probable that wherever you leak it underground to, will go to Paypal and collect a bounty. It'd be a quick fix probably in a span of mere hours after they become aware of it. It wouldn't show up on the price charts much if at all, I mean this story went pretty unreported, right? Even if you put of $100k, the price may drop 1-3%, that's peanuts for an opportunity like this, and it requires a shitton of spare money. Even if you leverage it, you might just coincide it with some big news. For example, since he reported the bug publicly, the price has risen by 9-10%. If you shorted that with leverage, ouch. Safe but not very effective I think, good try in any case!