True, some investors in ruble-denominated bonds had hedged against the risk of Russia defaulting by short-selling Russian hardcurrency bonds (Shleifer 2000, p. 108). For those investors, however, even the good news of August 17 Russia's avoidance of a hard-currency default was damaging, because it meant their hedge failed to protect them to the extent it should have.

Donald MacKenzie, An Engine, Not a Camera, loc. 1036