Who profits, when shorts attack? Obviously, there is money to be made with the pumping/dumping gangs of individual traders that we see openly posting on certain websites. TPIV was a classic example -- at the other site, they were running it up madly, and then selling, leaving all kinds of bagholders from higher (sometimes much higher) levels. Then there was AQXP -- at 55 one day, 18 the next. Hard to feel sorry for someone who bought at the highs after that run-up, though... that was just plain stupid.

But, obviously the big money comes when a well-funded, well-organized group can take down a company that has had a run up, and that they think is vulnerable. When I say well-funded, well-organized -- clearly Mako did not have that backing today when he tried to take down OCAT. They said "eff you Mako" and the stock closed UP big. However I wouldn't discount the idea that he'll go crying to daddy and get the gang on his side tomorrow.

But beyond that, who profits besides the shorts who profit directly?

Could it be a well-funded group that wants to buy a good stock at ridiculously low levels?

Could it be people who think they'll be able to force a ridiculously lowball joint venture, partnership, or buyout?

Could it be someone who thinks they could swoop in with a horrible financing deal, and profit from the company's low price?

Think about it.