Theranos survived for years after people first began raising the alarm... if you'd somehow figured out a way to make a large bet against it, there's a decent change the market would have remained irrational longer than you could have remained solvent unless you were very lucky with your timing.

Theranos never went public, so the quote about markets doesn't apply.

I do agree with the general sentiment, however. If FSD kills a person, many executives, including the top dog, need to go to jail.

I mean, the point is, someone betting against Theranos in this way, if it were a public company, would almost certainly have lost money (unless their timing was _perfect_). Enron would be a better example (as it was public); a lot of people, even before Enron's downfall, were fairly sure that Enron was dodgy, but trading on that belief would have been extremely dangerous, because it might take _years_ to come unstuck, and shorts (or puts) ain't free.