Even shorts and distorts get caught short in this game.... Goldman appears to have taken Cohodes down once already. You get greedy , take the short game too far and somebody punches your ticket for you...
https://www.forbes.com/sites/thestreet/2012/03/28/even-short-sellers-get-screwed-these-days/#5a2714116f14 ...he alleges that Goldman effectively put his hedge fund out of business.
Cohodes maintains that at the time of the 2008 stock market meltdown
, Goldman crushed his hedge fund by imposing “house calls” — margin calls not required by federal rules. The reason is that some of the shares that he was shorting (none of which were Overstock) had inexplicably climbed in value despite the general stock market disaster.
Cohodes testified that “someone was running in front of the shares.” He then goes on to muse that Goldman was engaged in the front-running, saying that “the guys at Goldman are common criminals, just common criminals.” (A Goldman spokesman has said that the front-running allegations were investigated and found to be not true.)