The recent market plunge was short sellers’ paradise. Is it an offence to make gains on the back of a disaster? The point is, attempts at banning them, let alone closing markets, are misguided and can’t be warranted.
The coronavirus market selloff was a bonanza for some. The last 2,5 months have been pure bliss for short sellers, who made more than 50 billion dollars in mark-to-market profits just between February 24 and March 3 on their overall U.S. positions, according to data from S3 Partners. Some short sellers had their eye on the coronavirus since January.