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by skookum 2098 days ago
> Companies that are dependent on financing might not get financing if loud short sellers are able to change the narrative

How would this scenario play out for a non-fraud and non-zombie business? If a publicly-traded company is in such a precarious state that they need the large cash infusion of either debt or a secondary offering to remain in business, the conclusion is that the business is non-viable. Either they IPO'ed prematurely or the expected growth isn't materializing. The short-sellers are performing the broader market a service in this case.