Short Attacks Yield Nothing (Patreon)

https://www.bloomberg.com/news/features/2023-08-06/how-much-did-hindenburg-make-from-shorting-adani-dorsey-icahn

TLDR

Nate Anderson wreaked havoc on some big names.... and his first pretty much made nothing from it. 

Summary of the Bloomberg article

1. Nate Anderson's Impact on Wealth:Nate Anderson wiped out as much as $99 billion from the combined wealth of Gautam Adani, Jack Dorsey, and Carl Icahn in a short span.
   The value of their publicly traded companies was reduced by $173 billion.
   
2. Specific Shorting Cases and Financial Impacts:Icahn Enterprises: A report accused Icahn Enterprises of overvaluing assets, leading to a stock plunge that erased $17 billion of Carl Icahn's wealth.
   Adani Group: A report on Adani Group led to a loss of about half the market value of Adani Enterprises, amounting to $30 billion.
   Block Inc. (Dorsey's Payments Venture): Shorting Block Inc. led to a more modest financial impact based on market data.
   Tingo Group Inc.: A report accused Tingo Group of fabricated financials, causing the stock to tumble 48% on the day of the report and 62% within a week.
   
3. Hindenburg Research's Impact:Hindenburg Research has targeted around 30 companies since 2020, causing an average stock decline of about 15% in the day following the report.
   
4. Anderson's Motivation and Approach:Nate Anderson is driven by exposing misbehavior and overblown companies, rather than purely financial gains.
   
5. Challenges and Risks of Short Selling:Short sellers face risks including legal action, physical threats, and potential losses due to market volatility.
   Shorting companies outside the US involves higher risks due to weaker speech protections, market bans on short selling, and potential geopolitical incidents.
   
6. Borrowing Costs and Short Interest:Borrowing costs for shorting Carl Icahn's Icahn Enterprises rose from about 4% to almost 17% after the Hindenburg report.
   Short interest increased for Icahn Enterprises and Block Inc. before the reports, potentially generating gains for short sellers.
   
7. Anderson's Approach and Partnerships:Anderson may have formed partnerships for short trades, with balance-sheet partners lining up bets based on his research and sharing a portion of the gains.
   Anderson launched campaigns against various companies, causing stock price declines and generating potential gains for short sellers.