[thisisit]

Not really, because stock prices are adjusted downwards in case of forward splits or stock dilution etc. If they the diluted shares are "worthless" so to speak then it doesn't matter.

What the real scenario is when there is a spin off where Stock A becomes Stock A + Stock B. In that case short sellers are responsible for the value of stock B. Though no one will try going this route just to screw some short sellers. If the spun off division (or company) is worthless, the stock prices will come around to reflect that and even Stock A's price will suffer from this "trick" used by management.

[TrickyRick]

Yeah, that makes sense. The share class example was a stupid one, but perhaps then it would work with a spin-off company? Although as you say, no one would probably do it, if nothing else because of the probable backlash of PR. Although it does make for an interesting thought experiment.

[aeorgnoieang]

It seems like it could work with a spin-off company, especially if the market judged the company (minus the spin-off) and the spin-off as being of greater value for whatever reason, e.g. 'focus'.