Because Cramer was a hedge fund manager 20 years ago? Data is much more available and transparent now, and regulations were passed after the late 2000's financial crisis that increased government oversight and eliminated some regulatory gaps of hedge funds. The definition of "hedge fund" and how it got it's name is because they hedge their bets to create less volatility in expected returns compared to other retail funds with high exposure to the market. They make more extensive use of leverage and derivatives, riskier bets, but hedge those bets to reduce volatility. What I linked to was what is being said by others about Citron, not me. People go on CNBC, talk to reporters, or go on social media all the time about the companies they are buying or shorting. It's to get the hype going to help them out. Just watch CNBC for a few days. There is more regulation on what you can and can't do, but it's still happening all the time. As for hedge funds definition, that is partially accurate but hedge funds have taken on many more forms now. Some hedge their bets like you mentioned but some don't. Essentially hedge funds are for investors wanting to hedge against their other investments because the fund hopes to make money in any market condition. Some can all be long, some all short, and some in between. They can essentially do whatever they want (within the regulations) and take on more risk because investors are wealthier and are made aware of the risky nature.