The negative side of short selling is when short sellers attempt to cause harm to a company (beyond identifying overvaluation) in order to profit from their short; this crosses a line and is where short selling becomes problematic.
normativepending
Speaker
Bill AckmanEvidence Quote
“the problem with being a short seller if you all you do is short stocks you want your companies to fail no matter what and you know some short sellers will take steps to actually cause harm to a business”
Source
Bill Ackman: Dealing with Haters, My Largest Trade Ever, and Sounding the Alarm for the Government— The Knowledge Project PodcastCreated: 8/10/2026, 11:24:39 PM
My Notes
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