Gotham City Research, after besting Gowex in a mere week, has decided to thank the Spanish people for their support, and address investors, doubters, haters and indeed all those who care about short selling and fraud. While quoting, of course, Batman:
It is not who we are underneath, but what we do that defines us.
Gotham’s success in exposing alleged fraud at the small Spanish company Gowex — which filed for bankruptcy at the weekend as its founder admitted to falsifying accounts for the last four years — is likely to prompt some cheers for the plucky short sellers of the world.
Rather than reheating the debate about the merits of short selling, a sometimes icky business thoroughly defended in 2008 and 2009 (here, here, here and here, for instance) how about a different question to which we’d like to know the answer. What examples are there of actual market manipulation that have stuck to the shorters? Read more