VW HIT$ EINHORN TWICE By KAJA WHITEHOUSE October 31, 2008 -- As the world financial community surveys the damage from this week's Volkswagen short-selling debacle, it appears Greenlight Capital's David Einhorn may have gotten a double whammy. In addition to his hedge fund, Einhorn is also the brains behind a reinsurance company called Greenlight Capital Re, which sources say uses an investment strategy that mirrors his hedge fund's. The company doesn't reveal its short positions, and officials at the company declined to comment. But sources tell The Post that if Einhorn's hedge fund was hit by the VW trading fiasco, there's a good chance the reinsurance company was also exposed. Certainly, the company's shares suggest investor pessimism. The stock hit several fresh lows this week, with shares plunging as low as $10 a share on Wednesday before ticking higher again. Yesterday the stock closed at $12.10. On Tuesday, investors across the globe were hit by the squeeze of a lifetime when a widespread bet against Volkswagen's stock backfired. Instead of dropping, the stock soared, forcing hedge funds to scramble to cover their positions. Losses were estimated to be as high as $30 billion across an array of hedge funds and investment banks. It's rare for a reinsurance company to make such an aggressive bet, but Greenlight was launched in part to invest differently than the typical reinsurer.