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Hindenburg Research to disband, short seller behind Adani's USD 150 billion stock rout announces closure

World News: Hindenburg Research announces its disbandment following controversial reports targeting companies like Adani Group amid significant scrutiny and allegations of misconduct.

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Edited By: Mahi Mishra
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Hindenburg Research to Disband (X/ @IndianTechGuide)

World News: In a surprising announcement, Hindenburg Research, the US-based short-selling firm known for its controversial reports targeting several companies, including the Adani Group, is set to disband. Founder Nate Anderson revealed this decision in a statement on the firm's website, emphasizing that the move is not due to any external threats or personal issues. "I have made the decision to disband Hindenburg Research. The plan has been to wind up after we finished the pipeline of ideas we were working on," Anderson stated.

Background on Hindenburg's Targeting of Adani Group

Hindenburg Research gained notoriety in 2022 when it published a report alleging financial irregularities within the Adani Group, which the conglomerate vehemently dismissed as "nothing but a lie" and "calculated attacks on India." The fallout from this report led to significant scrutiny of the Adani Group's financial practices and impacted its stock prices.

Analysts noted that the Supreme Court had cleared the Adani Group of these allegations, further complicating Hindenburg's claims.In August 2024, Hindenburg launched another wave of accusations against Adani, which the group characterized as "recycled claims" that had already been dismissed. This ongoing battle between Hindenburg and Adani has drawn considerable attention from investors and regulators alike.

Adani's Response to Short-Selling Attacks

Gautam Adani, chairman of the Adani Group, expressed his thoughts on these short-selling attacks in a recent address. He described them as a profound lesson in resilience and leadership. "Our leadership spirit was never more visible than during the financial market attack in January last year. It was a short-selling attack initiated from abroad. This was not a typical financial strike. It was a dual assault targeting our financial stability and pulling us into a political storm. It was a calculated move," he remarked.Hindenburg's activities have not only focused on corporate entities but have also extended to individuals within regulatory bodies.

The firm previously targeted Indian markets regulator chief Madhavi Puri Buch and her husband, which they labeled an "attempt at character assassination."As Hindenburg Research prepares to shut down, its legacy remains contentious, marked by high-profile confrontations and significant implications for market dynamics.

The disbandment of Hindenburg Research marks a pivotal moment in the landscape of short selling and corporate scrutiny. As the firm exits the stage, questions linger about its impact on investor confidence and regulatory oversight in financial markets.

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