Investors with Prior Knowledge of Hamas Attack Profited from Short-Selling Israeli Stocks, Study Suggests

Significant Spike in Short Selling of Israeli Securities Days Before October 7 Attack Prompts Investigation by Israel Securities Authority

Researchers from New York University and Columbia University have published a study suggesting that investors with prior knowledge of the October 7 Hamas attack on Israel profited from short-selling Israeli stocks in the days leading up to the attack.
The study found a significant spike in short selling of the MSCI Israel Exchange Traded Fund (ETF) and other Israeli securities on the Tel Aviv Stock Exchange (TASE) just days before the attack.
Short selling of one Israeli company alone, Leumi, Israel's largest bank, between September 14 and October 5, reportedly yielded profits of nearly $900 million.
The researchers noted similar patterns of short selling around other periods when Hamas attacks were reportedly being planned.
The Israel Securities Authority has confirmed that the matter is under investigation.