'Where is Hindenburg hiding now': US short seller faces netizens' ire after Silicon Valley Bank collapses

Amid the hullabaloo over the major banking collapse of Signature Bank and Silicon Valley Bank, US-based short-seller Hindenburg Research, which rocked Gautam Adani-led Adani firm by accusing of gross stock manipulation and accounting fraud is getting trolled for remaining silent on the issue.

This comes after US regulators closed New York-based Signature Bank, the third largest failure in US banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had $110.36 billion in assets and $88.59 in deposits at the end of last year.

All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the US Treasury Department and other bank regulators said in a joint statement.

Meanwhile, Silicon Valley Bank, which was a big lender for tech start-ups, was suddenly shut down last week by the state regulator - California Department of Financial Protection and Innovation or DFPI - after it disclosed it had suffered a loss of $1.8 billion from a $21 billion sale of its bond holdings.

Twitter users are now slamming Hindenburg for being selectively biased as it published a voluminous report on Adani Group but said nothing on the failure of two major US banks.

“Where is Hindenburg hiding now?” questioned a user. Another one wrote, -Silicon Valley Bank (SVB) goes from boom to bust, billions vanish -It is the biggest FDIC-insured institution to fail since 2008 -But no report or heads up from #Hindenburg -Selective amnesia or well-thought-out strategy”

“Adani Group has paid back all of its loans (on share Collateral), whereas Silicon Valley Bank has collapsed. Hindenburg Research labelled Adani as a scam but said nothing about SVB. It sort of demonstrates how accurate Hindenburg Research is,” a third user commented.

“Two largest banks of the USA, Sillicon Valley Bank and Signature Bank have been shut down but as per Hindenburg there is NO scam in SVB and SB banks. This is called propaganda,” a user commented.

The recent controversy involving the ports-to-power conglomerate after US-based short seller Hindenburg Research came out with a damning report accusing the Adani Group of stock manipulation and improper use of tax havens and flagged concerns over debt levels. Adani has rejected the concerns and denied any wrongdoing.

The stocks of Adani group firms had, at one point, crashed nearly 80 per cent, before making some recovery in the last few days following over Rs 15,000 crore capital infusion by an investment fund GQG.

Also Read: 'Missed US and did hit job on India': Hindenburg gets trolled for labeling Adani a 'scam' as SVB collapses

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