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EBIX is vulnerable to short attacks both by history and by small number of outstanding shares (relatively) plus high institutional ownership.
The company's financial and accounting practices are the main cause and not the causes you mentioned.

BUT the odds are this is a repeat.
How and why?

There has not yet been a serious and well executed fact check of the "charges"
The company can refute the charges with facts. But they didn't? Why?

I think you are in denial. Short seller is not evil, just like someone buying and driving the price is "Good". Both are motivated to make money and react based on their understanding of the company fundamentals.

- Has the company answered those questions effectively?
- Are their misfacts, lie's in the short attack you disagree with?
- Your inability to understand international accounting doesn't mean the shorts are wrong.
- Given the periodic short-attacks based on financial and accounting practices, Why the company is not engaging one of the big-four auditing firms?
- The company uses internally build system for financial record keeping. Most companies (including software/ IT firms) use established products like Oracle Financials etc. Why is the company not making that move (agreed it will cost at least few millions to migrate).
- What is the credibility of the board?
- What is the bench strength of the management?

These are important questions that deserve answers. I am not saying EBIX is fraud or anything like that. However, the trust of the investors are low on the management. The company is not bothered about it.

I have opened a small position to track the company closely sometime back. But I will close and move because at this time I have zero trust on the management.
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