Diameter’s Winning First Brands Bet Goes ‘Horribly Wrong’

Bottles of Fram synthetic high mileage motor oil at an auto parts store in Oklahoma City, Oklahoma, US.

Photographer: Nick Oxford/Bloomberg

After Scott Goodwin and Jonathan Lewinsohn nailed a short bet on First Brands Group, an auto-part supplier that rattled credit markets when it collapsed last year, the two doubled down with a reverse wager — hoping for a second payout.

The move still haunts them.