Profiting from Israel's October attack: Unveiling the traders who made millions

A new paper by Robert Jackson Jr and Joshua Mitts suggests that someone may have profited from insider knowledge of the October 7th attack on Israel by Hamas. The authors found a surge in short sales of an exchange-traded fund (ETF) tracking Israeli shares, with a significant increase in activity just days before the attack. Other securities also showed suspicious patterns, such as a rise in options contracts expiring on October 13th. The study has prompted an inquiry by Israel's securities authority, although critics suggest alternative explanations for the trading activity. The authors believe the trades were made by someone familiar with Hamas's secrets, and the potential profits identified so far may be just the tip of the iceberg.