And so the drama comes to and end, in a filing from the company:

The announcement was made public in a regulatory filing for the period ending June 17. The disclosure states that Paulson’s position has fallen from 34,714,300 shares to zero, meaning the company has sold its entire 14.1 per cent stake. The filing does not disclose the date on which the securities were sold, or over how long a period they were sold. However, a few days after Muddy Waters released its report full of allegations against Sino-Forest, the company said in an interview that management had been in touch with John Paulson, who heads the fund, and he said that he continued to hold his position.

This is a complete 180 from his initial response where he came out in defense of Sino Forrest (TRE:TSX), but even the best of them can get fooled some of the time.

Paulson is best known for betting against synthetic collateralized debt obligations (CDOs) during the financial crisis and making his firm $15B in 2007.