Article: How Short Sellers Become Targets During Market Routs

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How Short Sellers Become Targets During Market Routs

Lisa Pham

Bloomberg, 13 March 2020

During times of market turmoil, short sellers become a target. After prices plunged in a stock market rout on Thursday, March 12, regulators in various countries attempted to bring stability by restricting equity short selling, or betting with borrowed shares. Shorts, as these bettors are known, say their trading helps keep markets functioning smoothly. Critics say their actions can blur into market manipulation. Regulators keep a wary eye on them during periods of acute market distress, such as now during the coronavirus pandemic.

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