United States Department of Justice is investigating several strategies used by short-sellers and other potentially unlawful practices linked to short-selling, The Wall Street Journal reported on Wednesday, citing unnamed sources briefed on the inquiry.
Investigators are focusing on the now-illegal practice of "spoofing," a tactic that relies on making fake orders to manipulate share prices, as well as "scalping... where activist short-sellers cash out their positions without disclosing it," according to the newspaper.