On Nov. 21, 2001, the equity research firm Muddy Waters rated Chinese company Focus Media (Nasdaq FMCN) a "strong sell," citing a “significant overstatement of the number of screens in its LCD advertising network and its Olympus-style acquisition overpayments.”
As a result, the stock of FMCN dropped about 40%.
5-day chart of FMCN, from Yahoo! Finance
Then the next day, the website of this research company was hacked. Here is the image from the website:
This should be no surprise. Cyber warefare is real. It has existed ever since telecommunication was being used for military purpose. In the early 1900s, Japanese navy intercepted telecommunications of the Chinese navy, and used a torpedo to sank a Chinese navy ship, which carried the first group of well-trained Chinese navy officers who were to be deployed in combat against the Japanese.
During World War II, the US was the most successful party in leveraging this technique to acquire information about their enemies.
Now, but China and US have opened delared the establishment of special forces to fight the cyber war. No matter how much people deny it, cyber warefare is real!