The CTO decides to take up a short position on his own company, effectively betting against the stock price movement. If the stock price declines, he is poised to profit, and vice versa. However, much to the CTO's chagrin, when the product feature is released to the public, the stock price is unaffected and does not decline, even though customers are not happy. The market would be considered to be strong form efficient because even the insider information of the product flop was already priced into the stock. The CTO would lose money in this situation.