Andrew Left, a prominent short seller known for his role in the GameStop trading frenzy, is currently facing serious legal trouble from the U.S. Securities and Exchange Commission (SEC). Now, his deleted posts on the social media platform X (formerly Twitter) have resurfaced in a Justice Department indictment. Moreover, the indictment accuses Left of market manipulation and lying to investigators. They also questioned the legality of his past stock commentary and trading practices.

Prosecutor Arguments In GameStop Seller Andrew Left’s Case

Andrew Left and his research firm, Citron Research, gained significant attention during the GameStop short squeeze in early 2021. Left, who had taken a short position on GameStop, publicly criticized the company. He described it as overvalued and predicting its stock price would fall.

However, retail investors, largely mobilized through the Reddit community r/WallStreetBets, drove up GameStop’s stock price. This resulted in substantial losses for short sellers like Left. According to the Justice Department, Andrew Left’s deleted X posts were part of a broader strategy to manipulate the market for his benefit.

Hence, the indictment alleges that Left used the Citron Research account to create “catalysts,” events that could have significant effect on stock prices. Thus, he allegedly profited from his advance knowledge of these market movements.

However, James Spertus, Left’s defense attorney, argued that the indictment misrepresents Left’s actions. Spertus insists that Left’s posts represented his genuine views and that it’s “preposterous” to claim they could significantly move large-cap stocks. Moreover, he argued that Left’s reports included disclaimers advising against trading based on his posts.

Also, the lawyer noted that that all the information Left shared was public, not insider knowledge. In addition, the defense lawyer emphasized that there is no correlation between a stock’s target price and the price at which Left would close his short position. Furthermore, he stated that assuming such a connection is a governmental error, according to a Bloomberg report.

The short seller, who pleaded not guilty in LA this week, is potentially facing decades in prison if found guilty. If the SEC lawsuit against Left goes to trial, it could reveal how short sellers use social media. It might also help distinguish between honest commentary and intentional market manipulation.

The post Just-In: GameStop Short Seller Andrew Left’s Deleted X Posts Emerge Amid Lawsuit appeared first on CoinGape.

Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0

CFN Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed