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A Spanish flag flutters in the background above an advertisement for wireless networks provider Gowex, which declared bankruptcy on Sunday.
A Spanish flag flutters in the background above an advertisement for wireless networks provider Gowex, which declared bankruptcy on Sunday.
(JUAN MEDINA/REUTERS)

Why you should thank a short seller

The spectacular demise of Let’s Gowex SA is evidence that the world needs more short sellers – especially now, as stock markets reach new heights.

The failure of the award-winning Spanish WiFi provider followed the publication last week of a report by Gotham City Research, which alleged that more than 90 per cent of its revenues were pure fiction. Over the weekend, the company declared bankruptcy and said its founder had been falsifying accounts for at least four years.