But I still think short selling is absurd and I don’t understand why we allow it. If you don’t think a company will do well then don’t buy their stocks. Simple as that. I don’t know why we allow seemingly infinite market gambling that benefits no one except the gamblers.
It happens that the economic incentive arose from shorting, but could have just as easily come (less efficiently) from buying naked puts.
Journalists got to Theranos first, and short sellers got to Nikola first. With both in play, the odds of a timely exposé go up.
I knew several people who said what they were claiming was impossible but they didn't really have any interest in being the whistleblower.
(Disclosure: I’m short $NKLA after Hindenburg published. I believe it’s more likely going to the teens [and possibly worse] in 2020 than sustainably into the mid-40s. If it holds $30+ through 2020, I’ll probably cover.)