The U.S. Bank Crisis and Short Sellers: Assessing Whether They Were Heroes or Villains.

As First Republic Bank’s share price fell by double-digits in the aftermath of the collapse of Silicon Valley Bank last month, some people close to the San Francisco-based lender were worried short sellers were exacerbating its travails, according to a source familiar with the situation.

Investors who wager shares in a company will fall were increasing bets on First Republic’s stock when it was already taking a beating, making it difficult for the bank to recover its value, according to the source.

Source : The U.S. Bank Crisis and Short Sellers: Assessing Whether They Were Heroes or Villains.