Hedge funds are reluctant to accept their losses on the VW short squeeze. The German sportscar maker Porsche squeezed billions out of the financial Heuschrecke Not used to losing a battle against a bigger fish, hedge fund managers want the money back. Lawyers have been put to work to sue Porsche for manipulating the market. Their trade body, the Alternative Investment Management Association (Aima), is working on it.

There’s a minor problem, though. Porsche seems to know exactly what it has been doing, complying with all possible legal regulations. The German state have made the rules. Suing a nation for having an improper set of laws sounds like an interesting idea. The Germans are investigating the matter themselves as well. Bafin, the German financial watchdog, will release their view in the summer. Hedge funds don’t expect anything from Bafin, as uhm.. Porsche has fully complied with the law. Free advice for hedge funds and their lawyers. Forget. About. It.

• hedge fund, Options, stocks