Citron’s short-seller Andrew Left has warned that his company will no longer publish short-selling reports, according to Reuters. The development follows outrage against Citron by Wallstreetbets after retail traders sent GameStop shares up, against Left’s short-selling position.
- The decision to stop publishing short-selling research comes days after Citron abandoned its bet against GameStop after its stock soared almost tenfold in a fortnight.
- Left had shorted GameStop earlier in the month when its share price was about $40, expecting it to halve in value, but later forced to cover Citron’s position.
- Retail traders bought heavily-shorted stocks like GameStop, AMC Entertainment Holdings, and BlackBerry Lt, prompting professional short-sellers and hedge funds to cut losses.
- Short-sellers typically bet against companies that they believe have outdated business models or are overvalued.
- On Friday, Left reiterated that GameStop was a dying business, and its stock price would fall sharply in the future.
Citron Research is a research firm founded by Andrew Left that provides short-term focused stock market information centered on terminal and fraudulent business models.
