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Short and distort

Short and distort is a form of illegal stock manipulation, whereby an individual tries to drive down the price of stock through publishing and distributing unsolicited misleading advertising materials. Once the stock is negatively impacted, the scammer can short sell that stock at a gain

Expanded Definition

The "Short and Distort" stock manipulation scheme is a lesser known, and less common, variant of the Pump and dump stock manipulation scheme.

In this strategy, the scammer sells short a stock, and then ether produces or hires someone to publish negative material about the company. The scammer then sends this information to random individuals, usually in the form of paid mailers, spam stock touts or fax blasts. Once enough investors fall for the con and sell their stock, the scammer covers at a profit.

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