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Why hedge fund veteran Jim Chanos sees short-selling making a comeback

Chanos' predictions of an uptick in short-selling come as the UK government mulls plans to loosen rules around the practice

Jim Chanos made almost $100m from his bet against German payment firm Wirecard
Jim Chanos made almost $100m from his bet against German payment firm Wirecard Photo: David Paul Morris/Getty Images

Short-sellers had a lean period since the 2008 financial crisis but amid a long bull market and low-interest rate environment, American short-seller Jim Chanos now sees a trend reversal despite the market rally in January.

The founder of Kynikos Associates, who won big on his short bets against Enron Corporation after exposing its accounting fraud, said that the stage is now set for a greater period of shorts, similar to the wake of the dotcom bubble.

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