Adani Group’s stocks lost over $120 billion in the past week after a report by US-based Hindenburg Research was published. But… How does Hindenburg stand to gain from Adani’s collapse? Interestingly, the short seller will not benefit from the fall in value of Adani Group shares, but actually from the company’s overseas bonds. Hindenburg Research said it holds an undisclosed amount of short positions in Adani Group companies through US-traded bonds and overseas derivatives. These refer to derivatives of Indian companies that are traded overseas. Depending on the market conditions, the value of derivatives keeps on changing. Short sellers such as Hindenburg like to build positions quietly before unveiling their thesis for shorting the company to maximise profits like it did with Adani Group. Don’t forget to smash that subscribe button and like for more related content! Cheers guys.