US Justice Dept launches expansive probe into short-selling

Among the stocks whose trading activity the Justice Department is examining are Luckin Coffee Inc and GSX Techedu Inc, on which Carson Block's Muddy Waters Capital and Andrew Left's Citron Research circulated research, Bloomberg said.

New York: The U.S. Department of Justice has launched an expansive criminal investigation into short selling by hedge funds and research firms, according to three people familiar with the matter.

Investigators are probing the relationships among the hedge funds and firms that publish negative reports on certain companies, often with the aim of sending the stock lower, the people said.