re: mr. fleasNightmarket research.
The investigation is reportedly focused on the type of manipulative short-selling tactics that have garnered suspicions from critics for years. An example of a manipulative short sale involves publishing research under the guise of “independent” reports that are, in truth, intentionally misleading or inaccurate and heavily funded.
These so-called “short-and-distort” campaigns manipulate stock prices to induce shareholders into panic selling, enabling criminal-minded short sellers to cash out their trades and pocket the gains before shares rebound. The Justice Department’s investigation is also said to be looking into potential insider trading, whereby an infiltrator obtains sensitive information on the company and leaks it intentionally.