How synchronized are short sellers? We examine a unique dataset on the distribution of pro fits across a stock's short sellers and find evidence of substantial dispersion in the initiation of their positions. Consistent with this dispersion reflecting "synchronization risk," i.e., uncertainty...

We show that short sellers are constrained by their losses. Using unique data on the mark-to-market profits of short sellers of U.S. stocks, we document an asymmetric response of short selling to gains versus losses. Short selling substantially falls following large losses but does not respond...