Dispute Over Alleged Short-Selling of Israeli Stocks Prior to Hamas Attack

Researchers Claim Suspicious Trading Activity, Regulators Dismiss Findings as Inaccurate

Research by NYU and Columbia law professors suggests suspicious short-selling of Israeli stocks occurred days before the Oct. 7 Hamas attack, indicating possible prior knowledge of the attack.
The researchers identified a significant spike in short selling in the principal Israeli-company ETF days before the attack, and a similar pattern was observed before an earlier planned attack date in April.
The Israel Securities Authority (ISA) and the Tel Aviv Stock Exchange have dismissed the research findings as inaccurate, stating that there was no unusual activity on the stock exchange in the days leading up to the attack.
The researchers' initial report contained a currency conversion error, leading to an overestimation of the alleged profits from the short selling. The report has since been corrected.
Despite criticism, the researchers maintain that their findings reveal 'troubling trading patterns' that warrant further investigation by regulators.