Abstract: With the shorting of Luckin Coffee by Muddy Waters in 2020, the sniping of Chinese stocks by short-sellers has once again aroused widespread social concern. This paper introduces the company background, analysis the whole process of the Luckin Coffee case based on a comprehensive industry chain from the perspective of investment banks, short-sellers, other investment institutions and law firms and gives relevant suggestions based on regulators, limited companies and investors. Three conclusions are drawn: the genuineness, accuracy, integrity and timeliness of information disclosure is the key aspects of short selling; enterprises should improve the quality of information disclosure to cope with the shorting industry chain; a suitable short-selling mechanism could be established to motivate enterprises to improve information disclosure. The significance of this paper is to explore the positive role of short-selling in an active way, in order to fulfill the stable development of China’s capital market.