A common tactic of short sellers is to present negative information about a company to regulators. So it wouldn't be surprising if OSC simply capitulated to their remonstrations. 

As a side note, it’s interesting to see how the ability to disseminate negative information has been amplified by social-media channels. Journalists are inundated with emails and tweets from short sellers presenting negative information; online comments sections become channels to carry out negative campaigns.

One wonders if the crash in Home Capital stock may be more a reflection of this brave new, viral world. HCG may well have been due for a meltdown but the more likely timing would seem to be when higher interest rates cause a greater deterioration in the fundamentals.

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