Did Hindenburg Research shut shop after raising hell for nothing?

The closure of Hindenburg Research has demonstrated that its allegations against the Adani group and India's market regulatory framework were merely a defamatory and libellous endeavour, says Mitali Nikore, a former senior economist at the World Bank, in the video above.

Hindenburg Research, the firm known for its reports targeting billionaire Gautam Adani and wiping billions off his companies’ market value, will shut down, founder Nate Anderson announced on 16 January.

Controversial legacy

Anderson, 40, who established Hindenburg in 2017, made the announcement just days before Donald Trump’s inauguration as US President.

While Anderson cited the toll of the "rather intense, and at times, all-encompassing" nature of the work as the reason, critics speculated on alleged links to George Soros and pressures from the incoming Trump administration as possible factors.

In a cryptic post on X, Adani Group CFO Jugeshinder Robbie Singh remarked, "Kitne Ghazi Aaye, Kitne Ghazi Gaye."

How short-sellers operate

Short-sellers like Anderson typically bet against companies they believe are involved in mismanagement or fraud. They borrow stocks to sell, anticipating a price drop, then repurchase at lower prices to profit. Losses occur if stock prices rise instead.

Adani saga

In January 2023, Hindenburg published a report accusing the Adani Group of "pulling the largest con in corporate history," leading to over $150 billion being wiped from the group's market value at its lowest point. The Adani Group strongly denied allegations of stock manipulation, accounting fraud, and misuse of offshore tax havens to boost share prices.

Before the report, Adani was the world's fourth-richest person and Asia's wealthiest. After the fallout, he slipped in rankings but has since recovered, with a current net worth of $75 billion, placing him at No. 20 globally, behind Mukesh Ambani at No. 17 with $91.5 billion.

Nate Anderson's reflections

"There is not one specific thing—no particular threat, no health issue, and no big personal issue," Anderson wrote in a letter posted on Hindenburg's website. "The intensity and focus have come at the cost of missing a lot of the rest of the world and the people I care about."

Anderson, a University of Connecticut graduate in international business management, founded Hindenburg as a forensic financial research firm to identify corporate fraud and wrongdoing. He named the firm after the German airship Hindenburg, which famously crashed in 1937, symbolizing a man-made disaster.

Notable cases, achievements

Hindenburg gained notoriety in 2020 for exposing electric truck maker Nikola, leading to the fraud conviction of its founder Trevor Milton. More recently, the firm targeted Carvana Co., accusing its leadership of financial misconduct. Although Carvana denied the allegations, its stock later rebounded.

Other notable targets of Hindenburg included Lordstown Motors Corp, Clover Health, Tecnoglass, and Jack Dorsey-led Block. In 2023, it shorted Carl Icahn’s Icahn Enterprises.

"We shook some empires that we felt needed shaking," Anderson wrote, claiming that nearly 100 individuals faced regulatory charges "at least in part" due to Hindenburg’s work, including billionaires and oligarchs.

Plans for future

Anderson revealed plans to release materials and videos over the next six months to open-source Hindenburg’s investigative methods. He emphasized ensuring his team members transition smoothly to their next roles.

"Over time, people began to see what I hoped we could show — that having an impact is possible, no matter who you are," Anderson stated, praising his team as "ruthless assassins" in the field of financial investigations.

Speculations, reactions

Market expert Deven Choksi linked the firm's closure to broader geopolitical dynamics, commenting on parallels between Hindenburg’s shutdown and George Soros receiving an award from the outgoing U.S. administration.

Adani's recovery and Hindenburg's criticism

In India, Hindenburg’s report against Adani sparked a political storm. However, over time, the Supreme Court dismissed related litigation, and the Adani Group recovered most of its stock losses through strong operational performance.

Investor Ajay Bagga noted that short-sellers like Hindenburg operate in a legal grey zone, publishing damaging reports while profiting from short positions, often involving undisclosed hedge fund partnerships.

"Short sellers rarely make sustained profits. Some regulatory or legal action may have prompted a quiet shutdown," Bagga speculated, adding, "Hope they get prosecuted if wrongdoing is proven."