> The 'pump' side of 'pump and dump' doesn't have to be misinformation, does it?
Usually, it's disinformation, not misinformation, but it is possible or it to be lies of misdirection and omission rather than direct falsehoods, which may or may not literally constitute disinformation.
> The information doesn't have to be false for it to be a hit piece designed to profit the stock-shorting author.
Certainly, if you short based on not-yet-widely known true information, you want to ensure that the market discovers that information between the time that you get into the short position and the time you have to cover the short.
OTOH, trying to get the market to recognize and react to true information isn't really a “hit piece”.
The common law definition of fraud is an act of deliberate deception for the purposes of personal gain. Both elements must be true for an act to constitute fraud. If you say "I'm shorting x stock because of y" and you reasonably believe y to be true, then you're almost certainly acting lawfully. If you don't hold a position, you can say what you like about a company without the risk of committing fraud, because you don't stand to gain from your actions (although you may be guilty of libel). If you make public statements about a company and fail to disclose a financial interest, there's an inherent element of deception, regardless of the truthfulness of your statements.
Usually, it's disinformation, not misinformation, but it is possible or it to be lies of misdirection and omission rather than direct falsehoods, which may or may not literally constitute disinformation.
> The information doesn't have to be false for it to be a hit piece designed to profit the stock-shorting author.
Certainly, if you short based on not-yet-widely known true information, you want to ensure that the market discovers that information between the time that you get into the short position and the time you have to cover the short.
OTOH, trying to get the market to recognize and react to true information isn't really a “hit piece”.