How can you tell which ones are dirty or not? Unless this goes to trial there is no way to know. Is KBM dirty but JMJ isn't? Is Asher dirty but Magna isn't? I'm pretty sure they all short the stock they lend money to. That's a standard practice with these toxic lenders and if it's legal then why wouldn't they do it? That makes the loan pretty much risk free. And I don't think it's just the lender that shorts the stock. There's also plenty of savvy shorters out there that look for companies with toxic loans and will short them. How many companies with a ton of toxic loans have a stock price that goes up? It's probably very few so any company with toxic loans will always attract short sellers. That all contributes to the stock price tanking. That's why toxic loans are called a death spiral