Famous Short Seller Said Market Manipulation Was Like “Taking Candy From a Baby”
Famous short seller Andrew Left said it was like “taking candy from a baby” after cheating retail investors more than $21 million, according to a DOJ report released last week.
Left of Citron Research, is known for shorting GameStop (NYSE:GME) in 2021 during the ‘meme stock’ frenzy and again in 2024.
In January 2021, Left’s bearish call and short position on GameStop made him a primary target of the retail trading frenzy at the time.
The resulting short squeeze caused Citron Research to abandon its position in the $90s per share, resulting in a 100% loss.
In June 2024, Left took a new, smaller short position against GameStop as the stock experienced another surge.
He closed this short position shortly after, citing the company’s capital raise.
Following a multi-year federal investigation, Left was convicted of multiple counts of securities fraud in Los Angeles, accused of running a market manipulation scheme where he made bold stock calls while secretly holding opposite trades.
The investigation included a review of his activities during the 2021 GameStop frenzy, per the Wall Street Journal.
Here’s the latest.
Market Manipulation News: Andrew Left Faces 25 Years in Prison
Andrew Left has not gone to prison yet.
The maximum statutory penalty for the charges could result in decades of incarceration.
The primary securities fraud scheme count alone carries a maximum penalty of 25 years, with up to 20 years for each individual count.
He is scheduled to be sentenced on August 31, 2026, and remains free until that date.
Left and his legal team maintain that the verdict limits free speech, and he has signaled his intention to appeal.
“Andrew Left used his expertise to profit at the expense of retail investors, ordinary people who owned the stocks he targeted. He callously boasted that it was like ‘taking candy from a baby,’” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“Egregious schemes like this strike at the heart of free, fair and open markets, and warrant prosecution when they involve criminal manipulation. Investors should have confidence that U.S. markets are safe and free from the type of deliberate manipulation that Left engaged in to enrich himself at the expense of American investors.”
“Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California.
“A fair and transparent securities market is a foundation of our nation’s financial system. We will continue to bring to justice individuals who abuse the public trust placed in financial advisors.”
What Stocks Did Left Manipulate?
Aside from famously shorting GameStop, Left was convicted of 12 of 16 other counts related to specific trades in stocks such as Tesla, Nvidia, Palantir, and Meta, per Business Insider.
Left took off his glasses and stared intently at the jury as the judge polled each member on whether they agreed with the verdict.
“I think the jury got it wrong and it’s not the end of the road,” Left told reporters afterward.
“I think it’s scary,” he added. “We’re about to have the most talked about stock in the history of the stock market hit the market with SpaceX, and I think it’s chilling when you’re taking individuals and you’re limiting their ability to have free speech and trade with honest opinions.”
The DOJ says that part of his scheme, Left made false and misleading statements — in the form of online posts and public reports — concerning publicly traded companies, asserting that the market incorrectly valued a company’s stock and advocating that the current price was too high or too low.
“Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money.”
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