SPACs are attractive short targets for several reasons. They often have a relatively high market capitalization and somewhat fragmented shareholder base, making it easier to borrow shares to sell short, a fundamental component of short selling. SPACs are increasingly becoming targets for short-sellers, with the dollar value of bearish bets against shares of SPACs tripling in 2021 to about $2.7B. SPACs under investigation by the Securities and Exchange Commission and the Department of Justice are often targets of short campaigns.