Despite his early success in predicting subprime mortgages, he has received criticism for subsequent poor performance of investments. Bass has made prominent bets based on predictions of debt crisis in Japan and European sovereign debt, and shorted the Chinese yuan premised on a predicted collapse in the Chinese banking system. His fund has also challenged patents held by drug companies and shorted their stocks. His Japanese and European strategies have not been major successes and the Chinese yuan short led to severe losses for his fund in 2017. The drug patent challenge campaign fizzled after several legal setbacks. On June 14, 2020, the Wall Street Journal reported that Bass is facing regulatory scrutiny from SEC investigators for potential market manipulation—an issue that appears to stemming from a controversial trade, executed in late-2015, in which Bass' fund built a short position against the stock price of a publicly traded REIT then accused the REIT of being a ponzi scheme. Bass and Hayman Capital were subsequently sued by the executives of the REIT and the case is currently in the discovery phase of state court proceedings.