[ttobbaybbob]

No - if they got caught doing that it would hurt their reputation (and they'd have to do it with their personal money since VC funds aren't allowed to do such things). VC reputations are far more valuable than the money that could be made off this one trade. Additionally, if SVB was insolvent that would hurt any of their startups with cash at SVB - also detrimental to them

the sum of their incentives make it very improbable

[TrapLord_Rhodo]

"Hey, Some wierd stuff is going on at SVB. I'm short the stock. I suggest you get your money out."

No tin foil hat required.