Adani Group 2023: Short Selling as Market Discipline & Asymmetric Information — EP15 T1

In January 2023, a single research report erased a hundred and fifty billion dollars in market value in ten days. No missed earnings. No fraud conviction. No regulatory action. A short seller published a document — and the market believed it more than it believed the company. This is the financial autopsy of Adani Group and the Hindenburg Research report that triggered the largest single-week wealth destruction in Indian financial history. How short selling works as a market discipline mechanism, what Hindenburg actually alleged about offshore ownership structures and related party transactions, and why the market reacted before any regulator moved. The legal outcome remains contested. The mechanism is not.