SPACs: Investors victim to “Predatory Plays”

, Bloomberg Quint

Short-seller Carson Block said he’s building bets against more special purpose acquisition companies and that some retail investors will fall victim to “predatory plays.”

“There are just so many that are dodgy,” Block, the chief executive officer of Muddy Waters Capital, said Monday in a phone interview, declining to identify his latest targets. “The market is a scam -- and it’s here to stay.”

Block recently wagered against XL Fleet Corp., which went public via bank-check company and has plunged almost 70% this year, and MultiPlan Corp., which also went public through a SPAC and is down about 25%.

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