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That sounds a little bit like "If I can tell this company is defrauding investors, how can I get in on the fraud?" Whoever you borrow that stock from is now your mark that you are defrauding -- indirectly, of course, since you're not forging fake results or something. It still feels icky.



It's not you that are doing the defrauding. You're betting that it's a fraud and not trying to convince anyone of anything.

Lack of short-sellers increases fraud, it doesn't reduce it. Nobody spreads more anti-short seller animus that people trying to commit fraud.


> That sounds a little bit like "If I can tell this company is defrauding investors, how can I get in on the fraud?"

That's not how I meant it. I was thinking more generally about pre-IPO companies that you think (for reasons that you can legitimately use when investing in this manner) have dim prospects.


I think it's instead, "how can I get paid for calling it a fraud?"

If it is a fraud you're rewarded, if it isn't a fraud, you're punished

The marks are screwed regardless, but they're betting against you, claiming that it isn't a fraud, against your evidence that it is




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