Muddy Waters Takes Short Position in Edison International Over Eaton Fire Liabilities

Muddy Waters Takes Short Position in Edison International Over Eaton Fire Liabilities Muddy Waters has taken a short position in Edison International, alleging regulatory filings show Southern California Edison disregarded safety by failing to consider de-energizing transmission circuits that caused the Eaton Fire. Muddy Waters asserts Southern California Edison failed to consider de-energizing four 220-kilovolt transmission circuits in Eaton Canyon on January 7, 2025, which investigators concluded sparked the Eaton Fire. A determination of conscious or willful disregard could expose the utility to an estimated $20 billion liability to the California Wildfire Fund (~$20 per share post-tax), while an imprudence finding could result in a $4.3 billion liability (~$6.50 per share post-tax).

浑水做空爱迪生国际，指控其对伊顿大火负有不可推卸责任并面临巨额负债 浑水宣布做空爱迪生国际（EIX），指称南加州爱迪生公司的监管文件显示其明知风险却未对引发伊顿大火的高压输电线路断电，或面临高达数百亿美元的赔偿责任。 洛杉矶县消防调查人员已正式认定，2025年1月7日晚伊顿峡谷内的四条220千伏输电线路引发了伊顿大火，而爱迪生公司当晚未考虑断电。 若加州野火基金认定爱迪生公司故意或蓄意漠视公众安全，其需偿还该基金约200亿美元（折现税后约合每股20美元）；即便仅被认定为不审慎，也面临约43亿美元的责任（折现税后约合每股6.50美元）。

Newly assembled evidence drawn entirely from Southern California Edison’s own regulatory filings indicates the utility consciously disregarded public safety when it failed to consider de-energizing the four 220-kilovolt Transmission Circuits running through Eaton Canyon on the evening of January 7, 2025 — the transmission corridor that Los Angeles County fire investigators have now formally concluded started the Eaton Fire. If the California Wildfire Fund Administrator finds Edison acted with “conscious or willful disregard of the rights and safety of others”, it would mean the utility is liable to reimburse the fund approximately $20 billion, which would be \~$20 per share discounted, post-tax. Regardless, Edison’s failures over years and in the days and hours leading up to the ignition of the Eaton Fire almost certainly amount to “imprudence”, which would mean a $4.3 billion liability, or approximately $6.50 per share discounted, post-tax. The facts we have uncovered show that the Transmission Circuits’ ignition of the fire wasn’t only foreseeable – it was preventable; and, Edison seemingly failed at every turn to avert the disaster. The post [MW is Short Edison International (US EIX)](https://muddywatersresearch.com/research/2026/oct-13/) appeared first on [Muddy Waters Research](https://muddywatersresearch.com).