• disguy_ovahea@lemmy.world
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    5 months ago

    Yes, but the article makes it seem like their failure was based on mistakes. This was exactly what they intended.

    A private equity firm bought them to naked short the stock, while running the business into the ground, so they never have to replace the holdings they never borrowed in the first place. It’s the same as what investors tried to do with GameStop before r/wallstreetbets caught on and held them out of bankruptcy. It’s called predatory naked shorting.

    • booly@sh.itjust.works
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      5 months ago

      A private equity firm bought them to naked short the stock

      You just like throwing around words regardless of meaning?

      They owned equity, so they were long, not short. They owned a stake so they weren’t naked.

      What they did was a simple extraction of value from something they owned, destroying it. It has nothing to do with short selling, and has nothing to do with manipulation of stock trading (after all, they took it private so that it wouldn’t be publicly traded, so there were no public traders to manipulate).