Cellar boxing strategy used to purposely bankrupt companies is discovered and posted.

Cellar boxing strategy used to purposely bankrupt companies is discovered and posted.

The why and how of how hedge funds make billions by purposely driving stock price down and causing companies to bankrupt is discovered and posted.

The basic idea is to borrow as many shares as possible from the target company, sell those shares, and once the company goes bankrupt those shares never have to be repaid or rebought. It is essentially an infinite money glitch.

This strategy was  originally posted back in 2004 and describes how big money such as hedge funds purposely drives down price of stock of a target company and makes billions in the process.

[Original Post]

[Summary of strategy]

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