{"id":80966,"date":"2026-05-04T22:49:36","date_gmt":"2026-05-05T05:49:36","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=80966"},"modified":"2026-05-05T07:10:18","modified_gmt":"2026-05-05T14:10:18","slug":"avis-budget-exposes-trade-behind-cars-collapse","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2026\/05\/04\/avis-budget-exposes-trade-behind-cars-collapse\/","title":{"rendered":"Avis Budget Exposes the Trade Behind CAR\u2019s Collapse"},"content":{"rendered":"\n

The Avis Budget Collapse<\/strong><\/h2>\n\n\n\n

In its earnings report last week, Avis Budget Group, Inc (CAR) shined a spotlight on how the trading activity of Pentwater Capital impacted CAR’s share price. During the conference call<\/a>, the company described how Pentwater created a massive short squeeze. More importantly, the company called attention to Pentwater’s selling. The hedge fund disclosed a sale of 4.3M shares across April 22nd and 23rd that generated $1.75B gross. Avis Budget Group blamed Pentwater for the accompanying collapse in CAR. The stock chart says it all.<\/p>\n\n\n

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\"The<\/a>
The post-earnings reaction to Avis Budget Group Inc (CAR) looks anti-climactic compared to the preceding collapse in the stock from an epic short squeeze. Now the stock is stuck perfectly between 50DMA resistance and 200DMA support.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

Avis was very careful to identify Pentwater as the most likely cause of the short squeeze and subsequent collapse in the stock. The company has not bought or sold any shares since 2024, and its largest shareholder, SRS, has not done so since 2023. Most telling, Avis pointed out that “Pentwater has acknowledged that its sale of Avis stock, at least in part, was violative of the SEC Section 16 short swing profit rules.” Investopedia describes this rule<\/a> as follows: <\/p>\n\n\n\n

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“The short-swing profit rule is a Securities and Exchange Commission<\/a> (SEC) regulation that requires company insiders to return any profits made from the purchase and sale of company stock if both transactions occur within a six-month period…The rule applies to any shareholder who owns more than 10% of a class of the company’s equity securities registered under the Securities Exchange Act, and to the company’s officers and directors.”<\/p>\n<\/blockquote>\n\n\n\n