Why did Twitter stock jump today? Lawsuit, Hindenburg ease investor concerns
Justin Sullivan/Getty Images News

Twitter (NYSE:TWTR) shares jumped more than 7% on Wednesday after the company sued Elon Musk for engaging in "bad faith" efforts and investment firm Hindenburg Research said it had accumulated a "significant long position" in the tech company.
Late Tuesday, Twitter (TWTR) sued Musk, X Holdings I and X Holdings II in Delaware Chancery Court, saying the companies, which were formed in April, were for the express purpose of arranging and financing Musk's acquisition.
"... Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests," Twitter (TWTR) wrote in its lawsuit.
The company derided Musk in the lawsuit, writing that the 51-year-old Tesla (NASDAQ:TSLA) CEO believes he is "free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away," unlike every "other party subject to Delaware contract law."
On Wednesday, Hindenburg, usually known for taking short positions in stocks, said that it had accumulated a long position in Twitter (TWTR). Additionally, it said, "Twitterâs complaint poses a credible threat to Muskâs empire."
Separately on Wednesday, Wedbush Securities analyst Dan Ives said there could be a "Game of Thrones" battle if the two parties wind up in court, with Twitter's (TWTR) fake account issue being "front and center."
Last week, Musk said he was terminating his deal to buy Twitter (TWTR), citing concerns about the number of fake, spam and bot accounts on the site.