Short Seller Backhandedly Equates SPAC King Chamath Palihapitiya To A 'Crook'

John Hempton, short-seller founder and CIO at Bronte Capital, indirectly took a jab at "SPAC King" Chamath Palihapitiya Tuesday over his past endeavors and dealings.

What Happened: In response to a tweet by Palihapitiya praising the worth of "disagreeable" individuals in the start up space, Hempton replied: "disagreeable people can also be just raging arseholes. And charming people can be crooks. You are the most charming person in the arena."

The incendiary exchange looks to be a call back to a previous dialogue on X (formerly Twitter) where Palihapitiya said he was just "in the arena trying stuff" after being confronted by disgruntled investors, alleging they suffered massive losses due to his SPAC plays.

One user posted that they regretted their purchase of Virgin Galactic Holdings Inc SPCE — which Palihapitiya took public in late 2019 — only to be left in the lurch when he sold his shares.

Palihapitiya's counter was candid, telling a different user that he didn’t inflict any losses and to stop being a victim.

Why It's Important: A look at the background paints a bleak picture of Palihapitiya's influence. He was once the charismatic face behind multiple companies entering the market via his special purpose acquisition companies (SPACs).

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Despite the collapse of numerous SPACs he championed, Palihapitiya remains unrepentant, retorting to critics on social platforms.

“My commitment to you is to continue to find investments, put a bunch of my money in it and share them with you,” the so-called SPAC king said to investors back in December 2020.

While Palihapitiya reportedly claimed a personal profit nearing $750 million from SPAC activities, retail investors were often left out to dry. Accusations of him benefiting from hyping stocks, selling his shares and leaving others in financial straits seem to resonate in the public sphere.

Read next: McConnell Freezes On Camera Again - Chamath Palihapitiya Says It's Time 'To Ride Into The Sunset'

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