A little article on how Muddy Waters Reasearch operates.

In a nutshell:

1. Short the he11 out of a company

2. Issue a "research" report calling the company a fraud or Ponzi scheme

3. Once the investors flee (based on the "research"), cover your short position.

4. Laugh all the way to the bank.

http://www.globalpost.com/dispatch/news/regions/asia-pacific/china/131230/getting-rich-chinese-fraud-wall-street-muddy-waters