What was already a difficult and sometimes gut-wrenching strategy has only gotten harder in recent years. Nowadays, more of the companies that short sellers target are fighting back with lawsuits. They also mount sophisticated public relations campaigns against shorts. And if that weren't enough, there's a new crop of newsletters designed to "squeeze" short sellers.
"The game has become so stacked against the short seller that it's just not worth the periodic emotional and monetary high that comes from being right with a bearish bet," Joe Feshbach, who used to specialize in short strategies, told newsletter Value Investor Insight earlier this year.