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Matt Levine

Lyft’s IPO Was a Little Awkward

Also Uber relationships, Tesla insurance, and Bridgewater transparency.

Remember how Lyft Inc. went public, and there was some selling pressure on its stock, and Lyft complained that Morgan Stanley was supposedly “marketing a short-selling product” to early investors in Lyft who were subject to lockup agreements, and Morgan Stanley denied it, and none of it made any sense? In particular, what made no sense is that the lockup agreements—which restrict pre-IPO shareholders from selling stock until at least six months after the initial public offering—really really clearly prohibited hedging of the stock, so the “short-selling product” sort of obviously would not work. I chalked it all up to a misunderstanding.

But here is a tantalizing clue: