Financial elites were informed? - Short sellers knew about Hamas attack, study claims.

A study by researchers at New York University and Columbia University claims that traders received information about the Hamas attack on Israel on October 7 before it took place and sold short on the US and Israeli stock exchanges in anticipation that stock prices would fall after the attack.

The researchers, Robert J. Jackson Jr. of New York University School of Law and Prof. Joshua Mitts of Columbia Law School, found a sharp and significant increase in short selling of exchange-traded funds tracking Israeli companies in the days leading up to the attack. 

According to the findings, the short sales in question were larger than those that took place in the days leading up to the previous rounds of fighting between Israel and groups in Gaza and before the outbreak of the Covid-19 pandemic. 

The researchers note that they found significant short selling in dozens of companies traded on the Tel Aviv Stock Exchange before the attack. 

The study shows that between September 14 and October 5, a short position of 4.43 million shares in Bank Leumi was built up. 

After the Hamas attack, those who built up this position realized profits of NIS 3.2 billion.