As Porsche should know, even a hedge fund can be abused

Bafin, the German regulator, has announced in a laid-back sort of way that it will be examining share price movements around the episode to see if there was any insider dealing, but it already seems to have adopted the view that Porsche didn't do anything wrong. In other words, it is going to investigate the hedge funds, who are the victims of this sleight of hand, and not the perpetrators. Like so many things in these extraordinary markets, the origins of the problem go back to the collapse of Lehman Brothers, through which a number of hedge funds were running big short positions in Volkswagen (VW).

Also see Hedge fund Greenlight down more as VW surges.