Short interest in MSCI Israel ETF (EIS) spiked from ~2,000 to ~227,000 shares — a 10,000%+ increase — on October 2, 2023, five days before the attacks
Source: NYU Stern School of Business: 'Trading on Terror?' paper, October 2023
The SEC opened a formal investigation into the pre-October 7 short selling
Source: SEC press release; Reuters reporting
Abnormal short selling was concentrated in Israeli-listed stocks, not just the ETF
Source: NYU Stern: 'Trading on Terror?' paper
The investigation's results have not been publicly released as of March 2026
Source: SEC public records
The pattern mirrors pre-9/11 put options on United and American Airlines (4–6x normal volume, Sept 6–10, 2001)
Source: 9/11 Commission Report, Chapter 5, Note 130