On August 8, 2012, the New York State Supreme Court (Court) allowed several hedge funds to proceed against Porsche Automobil Holding SE (Porsche) in a lawsuit claiming that they lost more than $1 billion in a massive short squeeze as a result of Porsche’s allegedly deceptive manipulation of the market for Volkswagen AG (VW) shares in 2008. In allowing the hedge funds to proceed with discovery, the Court boosted the position of hedge funds and other investors seeking to recover for fraud in two important respects, both of which are discussed in this article. More generally, this article summarizes the Court’s order, including the factual background of the case and the legal reasoning behind the decision. For more on the legal principles at issue in the Porsche matter, see “Update, Are There Still Avenues for Recovery in United States for Overseas Hedge Fund Losses After Morrison v. National Bank Ltd.?,” Hedge Fund Law Report, Vol. 3, No. 27 (Jul. 8, 2010).