What is the role of activist short sellers on Wall Street?

Activist short sellers are investors who take a short position in a company's stock and then publicly criticize the company with the aim of driving down the stock price. They do this by uncovering and publicizing negative information about the company, such as accounting irregularities or ethical violations.

Their ultimate goal is to profit from the decline in the company's stock price. They typically disclose their short position in regulatory filings, which allows investors to see their bet against the company.

While some see activist short sellers as a force for good in uncovering wrongdoing by companies, others view their tactics as unethical and harmful to companies and their shareholders. The Securities and Exchange Commission (SEC) closely monitors the activities of activist short sellers and has brought legal actions against some for market manipulation and other violations.