Unusual stock move shakes up cyber community

"“I wouldn’t say it’s good,” said North­eastern Uni­ver­sity law pro­fessor Andrea Matwyshyn. “I would say it’s inevitable.”

The action by Muddy Waters was unusual.

Usu­ally, secu­rity researchers at least try to act in the best inter­ests of device man­u­fac­turers and notify a com­pany in some way of a secu­rity flaw in its prod­ucts. A few sell the bugs to gov­ern­ments who use them in espionage.

Matwyshyn noted that the Secu­ri­ties Exchange Com­mis­sion has advo­cated for more trans­parency about secu­rity risks in prod­ucts. For the past few years, Matwyshyn has held con­ver­sa­tions with investors trying to incor­po­rate cyber­se­cu­rity into invest­ment schemes.

“This did not come out of left field,” she said."