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FTX event reignites enthusiasm for short-selling institutions! Citron: Continues to short ETH, citing fundamental flaws.

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FTX event reignites enthusiasm for short-selling institutions! Citron: Continues to short ETH, citing fundamental flaws.

In January last year, Citron Research, a short-selling institution that was backfired by Reddit users for shorting GameStop, recently expressed its views on the FTX incident and criticized the Democratic Party in the United States, while also indicating that it will continue to short ETH.

Foreword: What is WSB (Wall Street Bets), GME (GameStop), YOLO, Short Squeeze? Redditors vs. Institutions

Citron Research Criticizes Government

According to Citron Research's Twitter account, the firm expressed that the U.S. government should be ashamed for allowing SBF to get so close to the government and its power without even checking his tax return filings.

Citron Research also questioned why the FBI has not investigated SBF, who is the second-largest donor to the Democratic Party, which may involve national security issues.

"If you don't try to shut us up, we can tell you about SBF's issues in 2 hours," Citron Research stated.

Citron Research Emphasizes Continued Shorting of ETH

Following significant losses in the GameStop incident, Citron Research previously announced on Twitter that they would no longer release their 20-year-old "short reports" and would focus on providing opportunities for retail investors in bullish stocks.

However, after the FTX incident, Citron Research has reignited their enthusiasm for shorting, as they believe that many stocks are rising based on the misconception that "others have already done the research."

"We will continue to short ETH because we believe this $130 billion token shares many common-sense deficiencies with the entire SBF story," Citron Research stated.

Citron Research Misunderstands Decentralization

In this post, when Citron Research referred to victims and FTX account holders, they described FTX as "decentralized" and questioned whether decentralization truly works when these victims transfer their money to the Bahamas where FTX is headquartered.

However, FTX is a centralized exchange, which is vastly different from decentralized exchanges. As a result, this statement faced criticism from many users who felt that Citron Research seemed to lack a thorough understanding of the crypto space.