The hackers would provide data proving the medical devices were life-threatening, with Block taking a short position against St. Jude. The hackers’ fee for the information increases as the price of St. Jude’s shares fall, meaning both Muddy Waters and MedSec stand to profit. If the bet doesn’t work, and the shares don’t fall, MedSec could lose money, taking into account their upfront costs, including research.
Source: Carson Block’s Attack on St. Jude Reveals a New Front in Hacking for Profit – Bloomberg