Comment by konschubert

Shitty companies failing is a necessary and important mechanism of a functioning economy.

Look at the Soviet Union for an example of what happens when no companies ever go bankrupt.

Short activists expose shitty companies and as such, they play an important role in the economy.

Maybe Wirecard's fraud scheme would still be going on if it wasn't for short sellers.

Maybe shorting, in particular naked shorting, is not ideal. But there needs to be a way to reward people for taking shitty companies down.