To cause an electrical short circuit by accident; in finance, to bet that a stock's price will fall; to cheat someone out of something.
From 'short' (reduced length, or inadequate). In electricity, a 'short circuit' is where current takes an unintended, direct path. Financial usage is more recent.
Stock market 'shorting' was made famous in the 2008 financial crisis—some traders bet against banks and made billions when those banks failed. It's controversial because you're basically hoping companies lose money!
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