After Musk resurrected his deal to buy the social-media company, Hindenburg Research sold all of its shares.
Musk proposed restarting talks to buy the micro-messaging service.
We have closed our long position in the social networking site.
This year, the company has been long and short on the social networking site.
It opened a short position in May and argued that Musk would either walk away from his takeover deal or look to renegotiate.
The bet was that Musk's deal would fall apart after he tried to end it.
When it disclosed its long position three months ago, it said it had accumulated a significant long position in shares of the micro-blogging site. The threat to Musk's empire is posed by the complaint.
After Musk proposed restarting talks to buy the company, it dumped its stake and went back to the drawing board.
He could avoid a costly court battle by backpedaling. According to the lawsuit, Musk was obligated to complete the deal even though he tried to back out.
In the time that he owned the stock, the company's price went from $37.22 to $52.03. Early Wednesday, it fell to $51.09.
It's like Musk is giving away something to buy something.
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