Short and distort
Short and distort is the mirror image of a pump and dump: taking a short position and then spreading false or misleading negative claims to drive the price down. Honest negative research is not short and distort, and the distinction is the truth of the claims.
Where does short and distort come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Gregory Lemelson, Lemelson Capital Management, LLC, and The Amvona Fund (short and distort, 2022) | SEC | 2022-03-31 | Short And Distort | $160k | judgment |
| SEC v. Gregory Lemelson, Lemelson Capital Management, LLC, and The Amvona Fund (short and distort, 2021) | SEC | 2021-11-08 | Short And Distort | — | filed |
| SEC v. Gregory Lemelson, Lemelson Capital Management, LLC, and The Amvona Fund (short and distort, 2018) | SEC | 2018-09-13 | Short And Distort | — | filed |