Earlier quoted context omitted.
If you discover a flaw in a product, bet against the stock, and publish the flaw, that's not insider trading. Here's an example of Gotham City Research trying this approach and failing: https://www.thedrum.com/news/2017/09/21/criteo-counters-frau... (Not a lawyer)
> If you discover a flaw in a product, bet against the stock, and publish the flaw, that's not insider trading. Thanks for the information, never thought about that. On the other hand, would purchasing information about a flaw and using the information to bet the stock constitutes insider trading?
If they signed a NDA to cash in on the bug bounty and then sold it to you, I think they are vulnerable to breach of contract, but I don't think you are legally vulnerable, however this is not legal advice, I am not a lawyer, and do you want to go through the expense of finding out?