I'm with you on the shorts being more evil than stupid. They know better than to think Deloitte would screw up on a small cap, and that Starr would be duped into investing 30 mil.
I have nothing against people who short stocks that are overvalued or that have issues, but these shorts try to captilize on peoples emotions and fear monger. Then just when investors start to question themselves and doubt their own DD, they come out with a story or accusation that sounds believable and everyone panics and sells.
Thats what these shorts are banking on, we'll see how it plays out.
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