You are part of the problem with this country and not part of the solution. Shorting is not investing. It's speculation. And this speculation has made things worse for the world.
There were a lot of hedge fund idiots trying to take VW down. They saw a victim by their sheer size and force together. They thought that they were immune to losses because of it.
>>>The list of hedge funds hit by the Porsche squeeze on VW grew yesterday as it emerged that Steven Cohen's SAC Capital, and Perry Capital, a key financier in Malcolm Glazer's takeover of Manchester United, were among the losers. Greenlight Capital, run by David Eindhorn, Marshall Wace, York Capital and Glenview Capital are also among about a hundred hedge funds thought to have made losses.<<<
I think an idiot is someone who's down 50% in their portfolio. There are plenty of shorts who are up substantially over the past few years. I for one am up well over 100% since the beginning of 2008 on a mid 6-figure portfolio. Of course you can choose to call BS on me, but I've posted plenty of non-COH trades during my time here that have been spot on.
That's what's great about the markets - financial Darwinism. A person as stupid to be long COH with a buy-and-hold mentality throughout this entire crisis deserves to be down 50 to 75% on their position. A person stupid enough to bet 100% of their retirement portfolio (i.e. Gnome) long COH with no exit strategy deserves to be down 50 to 75% of their retirement portfolio.
Anyone intelligent enough to get short this market is doing quite well.
With respect to your VW example, any hedge fund manager naked short VW and got burned because of the short squeeze during those few days is an idiot for not having some type of hedge in place.
Most people's stock portfolios are down 50% you idiot. Most hedge funds have been bleeding, and they are supposed to be run by the best of the best money managers. Hedge funds lost $30 to $35 billion on their ill timed shorts of VW last year alone.