** Shares of Los Angeles-based insurer Mercury General MCY.N fall as much as 4.3%; last down 2.4% at $48.74
** Wolfpack Research says it is shorting MCY, claiming that the firm's California subsidiary is "deep underwater" as it estimates more than $2 bln in losses following the Los Angeles fires
** MCY did not immediately respond to a Reuters request for comment
** Reuters could not independently verify the claims in the report
** Wolfpack alleges MCY "management seems slow to share the true extent of its exposure with investors"
** MCY stock down 24.5% so far this year
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
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