For readers of Money Stuff who haven't paid much attention to the Luckin Coffee controversy yet, this anonymous white paper makes fascinating reading.https://twitter.com/muddywatersre/status/1223274746017722371 …
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February: "But that is an anonymous paper, published by someone who has no obvious claim to being an expert on the Chinese coffee market, who likely has a conflict of interest. Why assume it has non-zero truth value?" April: "... Oh."
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Sometimes I envy short sellers. Is there any purer application of "My job is winning arguments on the Internet" than "The newspapers reprint press releases and in the short run the market is a voting machine. You're all wrong. So wrong. Can I borrow your shares? Will return at 0"
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Replying to @patio11
Funny story: shares that are delisted for being too fraudulent to trade are hard to buy back to cover short positions. Apparently some short sellers have been caught in positions for years.
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Yeah, I've seen credible reports of folks with ITM puts who exercised them near the last day of trading (peanut gallery: opens a short position at very large paper profit) who were then unable to cover and stuck with hard-to-borrow costs of ~100% (annualized) on the position.
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