Short Sellers Feel Heat After US Charges Andrew Left With Fraud

Trampled by markets and attacked by angry executives, short sellers now find themselves confronting their biggest worry yet: the US government.

Fresh accusations by federal authorities that one of the industry’s most prominent players, Andrew Left, committed securities fraud is sending shock waves across the already shrinking field of investors who specialize in betting against specific stocks. For a group that has long courted controversy by taking on some of the biggest names in business, it’s a particularly sobering moment.

Andrew Left

Photographer: James Jackman/Bloomberg

The US government has spent years digging into the industry’s practices, but as inquiries by Justice Department and ...