BaFin Asks Prosecutors to Investigate Wirecard Short Sellers

Germany’s financial markets regulator asked Munich prosecutors to investigate investors who made bets against Wirecard AG for suspected market manipulation.

The suspected offense was in the form of a “short attack,” according to a spokeswoman for the authority, known as BaFin. Short sellers borrow a stock and then sell it, in anticipation that it will fall and they can buy back the shares at a lower price to pocket the profit.

The shares have whipsawed this year after a series of reports in the Financial Times alleged suspicious accounting practices at the company. Wirecard rejected those reports and hasn’t been ...