[graycat]

Did PrivCo or some related business entities have a short position in LivingSocial when the PrivCo statement was made on LivingSocial?

Well, not in any simple sense since apparently LivingSocial is not public yet. But a short position on a related company?

[josh2600]

It is difficult, at best, to know anyone's position in a private company without insider knowledge.

While it might be theoretically possible to short something using a company like SecondMarket, the prevailing wisdom is that if it's not public it's probably not being shorted.

[graycat]

Ah, yes, as I just corrected, but how 'bout being short on GroupOn?

[josh2600]

I think everyone is, or has been, short on GroupOn.

[jbail]

Can you have a short position in a privately held company? I don't think so, but maybe there's a financial vehicle for that.

[driverdan]

You could have a contract to sell that would function similarly to futures or options. I doubt anyone would take the other side of a contract like this for LivingSocial though.

[graycat]

Right. Sorry about leaving out the last paragraph. But one might try being short on a related public company, say, GroupOn.

[bitcartel]

That boat has long sailed. Anybody who wanted to short Groupon would have done it more than a year ago, when the stock was trading around $20-$25.