S3, which tracks short-positioning data, says the hedge fund Situational Awareness is not being targeted by “predatory” short-sellers. S3’s founder argues that the losses that led Situational Awareness to sell shares at deep discounts are better explained by the fund’s own highly concentrated holdings in widely followed, crowded trades. According to S3, the pattern of selling aligns with positions that move sharply when sentiment shifts or markets turn, rather than with any coordinated effort by short sellers to pressure the fund. Both outlets report that S3 bases its assessment on short-selling positioning and related market data, concluding there is no evidence of a deliberate campaign against Situational Awareness. The reports therefore frame the episode as a consequence of concentration and crowding on the long side, paired with adverse market moves, rather than an outcome driven primarily by short-side behavior. The dispute centers on interpretation of market mechanics and the role of short positioning in the fund’s trading losses.