[CydeWeys]

Shorting can also help investors in the market at large if it helps bring down companies that are obvious scams. Some short seller reports have pretty famously destroyed companies that were up to no good, preventing further harm to future investors and boosting confidence in the valuations of the rest of the market. If there's no money in doing all of those short seller reports, then people won't do them, and the market will have less information available to it in total, and more frauds will continue to go under the radar.

[dustymcp]

This is the truth shortsellers are not just bad, like All Long buyers are not all good..

[klmadfejno]

Like what

[rcxdude]

Luckin Coffee, for example (massive valuation until it turned out a huge number of their sales were fraudulent. Exposed by short sellers). Enron also was in part brought to light by short sellers.

[CydeWeys]

Enron is one of the most famous examples: https://www.finance-monthly.com/2017/10/the-top-10-greatest-...