'Hindenburg was a model to benefit': Investor blasts US short seller after shutdown, says 'it won't be missed'

Ajay Bagga, a seasoned investor, has offered sharp criticism of US short seller Hindenburg Research following its decision to shut down operations. In a tweet, Bagga on Thursday outlined several possible reasons for the closure, calling the firm’s practices a "model to benefit" from targeted attacks on companies.   

Hindenburg Research, founded in 2017 by Nate Anderson, became infamous for its scathing reports that triggered heavy investor sell-offs and regulatory scrutiny. Among its high-profile cases was its 2023 report on Adani Group, which led to a massive $100 billion loss in market value for the conglomerate.  

Bagga, in a social media post, dismissed Hindenburg's claim of altruistic intent. "This was no altruistic, 'truth-seeking' endeavour," he wrote. "It was a model to benefit from issuing scathing reports on companies and promoters and simultaneously shorting them in advance of the release of these damaging reports."  

Anderson, in a blog post, cited the "intense and all-encompassing" nature of Hindenburg's work as the reason for disbanding the firm. However, Bagga speculated otherwise, suggesting regulatory pressure might have been a factor. "Some regulatory action may have taken place, and a way to skip penalties may be an agreement to quietly shut down," he said, adding, "Hope they get prosecuted and are not let off so easily in case some regulatory or legal action is ongoing against them."  

Critics of Hindenburg, including Supreme Court lawyer Jai Anant Dehadrai, have raised broader questions about the firm’s motivations and alleged links to larger political and financial agendas. In a tweet, Dehadrai said, "With Hindenburg shutting down mere days before Trump takes office, the message couldn’t be clearer: the attacks on Prime Minister Modi, the Adani Group, and India’s stock market regulator Sebi were not just about profit — they were part of a calculated and synchronised effort to sow instability in India.

"But here’s where it gets truly interesting. With Nate Anderson now fully exposed and in retreat — who were the crooked puppets in India who tried spinning a conspiracy theory around the above-mentioned entities? Will the former MP who orchestrated many of these attacks in India, particularly against the Prime Minister, be fully investigated and subjected to a rigorous custodial inquiry and global financial audit? The money-trail from this individual will lead to some of the most notorious criminal entities to have ever existed—worldwide," he asked.

Bagga echoed concerns over the damage inflicted by Hindenburg’s reports. "Damage has been done to companies, promoters, and markets by targeted attacks from which they sought to benefit," he stated. He also criticised the sustainability of Hindenburg’s short-selling model, pointing out that "short sellers hardly ever make sustained profits."  

Bagga added that Hindenburg "won't be missed."