Hedge Crusher. Shower Thought.

If I hedged bets against a company and then become the biggest contributor to it's downfall/bankruptcy, would that mean I committed insider trading?

It's a weird question that I had when thinking about hedge funding. Hedge funds simplified are betting on the failure of a project, share, or whatnot. If what you get for winning is money, wouldn't that mean that you also reduced the amount of places to cash it out on real stuff? And yet, it seems we still use it despite the real possibility of losing to simply not being able to spend you hedge winnings. There is also the problem above. I would like the answer to be no considering a better world is one where winning a hedged bet is unlikely even with involvement. Hopefully the answer isn't yes, as that would mean that the act of hedge funding and the actions taken for the fund are fulfilling the loss of a lot of business.