5 New Short Reports and Every Target Closed Down
Weekly Wrap Up: Sunday, March 1, 2026
It was a blockbuster week for activist short selling research. Dan Loeb made headlines declaring that the "lost art of short selling has come back," telling a Miami conference that 2026 is the first year in a long time where his fund is generating alpha on both sides of the book. With the Magnificent Seven stumbling to start the year, the window for fundamental short sellers has widened considerably. Meanwhile, Trump Media lobbed a grenade at the market-making establishment, reportedly sending letters to Congress accusing Jane Street, Citadel, and others of naked short selling in DJT shares. And across the pond, short sellers are piling into bets against UK REIT Land Securities, wagering that AI-driven white-collar job losses will crush London office demand.
Against that backdrop, five new short reports landed this week spanning semiconductor cycles, lithium mining, private credit, regional banking, and industrial conglomerates. Blue Orca's devastating report on Sigma Lithium (SGML) triggered the biggest intraday move, with shares cratering over 15% before partially recovering. Hunterbrook Media took aim at America's largest nonbank venture lender, Hercules Capital, and Wolfpack Research went boots-on-the-ground in Washington, D.C., photographing vacant and vandalized properties backing Hingham Institution for Savings' loan book. Here are this week's reports at a glance:
- Citron Research targeted SanDisk Corp (SNDK) alleging the stock is a commodity memory business being priced like a moated tech franchise at the peak of a cycle. Stock closed the week down 4.7%.
- Wolfpack Research targeted Hingham Institution for Savings (HIFS) alleging undisclosed foreclosures, $125M+ in hidden CRE distress, and dangerously low reserves. Stock closed the week down 8.0%.
- Jehoshaphat Research targeted GPGI, Inc (GPGI) alleging Husky Technologies' free cash flow is inflated by approximately 90% and that revenue was recognized by shipping products to a parking lot. Stock closed the week down 2.6%.
- Blue Orca Capital targeted Sigma Lithium Corporation (SGML) alleging undisclosed lawsuits, dangerous mine wall deviations, and a looming liquidity crisis. Stock closed the week down 12.0%.
- Hunterbrook Media targeted Hercules Capital (HTGC) alleging $1.5B in software loans marked at par during the worst software credit downturn in years, phantom PIK income, and premium-dependent flywheel risk. Stock closed the week down 7.9%.
New Activist Reports
Citron Research Short Report on SanDisk Corp
| Metric | Price | Change |
|---|---|---|
| Close (Day Before) | $666.49 | — |
| Low (Report Date) | $612.92 | -8.0% |
| Close (Report Date) | $638.52 | -4.2% |
| Close (End of Week) | $635.36 | -4.7% |
Stock Price Impact
SanDisk shares took an immediate hit when Citron posted its short thesis, plunging 8.0% intraday to a low of $612.92 before recovering some ground to close at $638.52, down 4.2% on the day. Sellers continued pressing through the remainder of the week, with shares settling at $635.36 on Friday for a weekly decline of 4.7%. The initial 8% intraday drop is notable for a tweet-based thesis with no formal PDF report or price target. The recovery from the intraday low suggests some investors viewed the dip as a buying opportunity, though the continued slide through week's end indicates Citron's cyclical argument found a receptive audience among institutional holders wary of peak-cycle NAND valuations.
About The Company
SanDisk Corp is a NASDAQ-listed semiconductor company specializing in NAND flash memory storage solutions, including solid-state drives (SSDs), memory cards, and USB flash drives. Formerly a subsidiary of Western Digital, SanDisk was spun off and re-listed as an independent public company. The company operates in the highly cyclical memory and storage industry, competing against Samsung, SK Hynix, Micron, and Kioxia. SanDisk has historically been a pure-play NAND flash company, positioning itself in the premium SSD market for enterprise and consumer applications. The stock had appreciated significantly heading into the report amid industry-wide NAND supply tightness.
Key Points from the Report
- Cycle peak argument: The report alleges NAND flash memory is repeating the same boom-bust pattern seen in 2008, 2012, and 2018, and that the current supply tightness is a temporary "mirage" caused by Samsung yield problems in another product line, with double the 2018 peak capacity waiting to come online.
- Samsung competitive threat: According to Citron, Samsung has a 30-year history of choosing market share over margins and is now moving its best chips into the premium SSD market that SanDisk calls home, with cheaper and newer technology.
- Insider selling signal: The report highlights that Western Digital, SanDisk's former parent and a long-time investor, sold a significant portion of its holdings days before the report at prices 25% below recent highs.
- No moat, commodity pricing: Citron argues the market is pricing SanDisk like NVIDIA, but unlike NVIDIA, SanDisk sells a commodity product with no proprietary lock-in to protect margins when supply normalizes.
Read the Full Report Summary →
Wolfpack Research Short Report on Hingham Institution for Savings
| Metric | Price | Change |
|---|---|---|
| Close (Day Before) | $303.24 | — |
| Low (Report Date) | $278.00 | -8.3% |
| Close (Report Date) | $296.50 | -2.2% |
| Close (End of Week) | $279.12 | -8.0% |
Stock Price Impact
Hingham shares dropped sharply on report day, falling 8.3% intraday to $278.00 before partially recovering to close at $296.50, down 2.2%. But the real damage came over the following sessions. By Friday, HIFS had given back virtually all of that intraday recovery, closing at $279.12 for an 8.0% weekly decline. The delayed selling pattern suggests institutional investors took time to digest Wolfpack's extensive property-level evidence and court filings before reducing positions. The fact that shares ended the week near the report-day low, rather than recovering further, indicates the market is taking these allegations seriously.
About The Company
Hingham Institution for Savings is a NASDAQ-listed regional bank headquartered in Hingham, Massachusetts, with approximately $4.54 billion in total assets. Originally a conservative Massachusetts savings institution, the bank has transformed in recent years into a highly concentrated commercial real estate lender, with significant exposure to the Washington, D.C. market. HIFS is led by CEO Robert Gaughen III, son of the previous CEO, and has attracted investor attention for its outsized returns and unusual investment portfolio, which includes a concentrated equity portfolio with heavy Alphabet exposure. The bank's market capitalization stood at approximately $661 million prior to the report.
Key Points from the Report
- Undisclosed foreclosures: Wolfpack alleges HIFS foreclosed on two properties in January 2026 but never classified those loans as "non-performing" in its Q4 2025 earnings report, concealing the extent of portfolio distress from investors.
- $125M+ in hidden CRE distress: On-the-ground site visits revealed vacant, vandalized buildings with stop work orders, expired permits, and failed inspections, yet the bank classifies nearly all of these loans as "low to average risk."
- Extreme leverage and concentration: CRE concentration stands at 550% of Tier 1 and 2 capital, far above the FDIC's 300% guidance threshold, with 94% of loans pledged to the Federal Home Loan Bank. An FHLB downgrade could trigger a $101M capital call.
- Borrower lawsuits for fraud: HIFS filed four lawsuits in February against a borrower in default since November 2025, including a claim for fraudulent conveyance, yet these loans were still classified as "performing."
Read the Full Report Summary →
Jehoshaphat Research Short Report on GPGI, Inc
| Metric | Price | Change |
|---|---|---|
| Close (Day Before) | $23.03 | — |
| Low (Report Date) | $22.14 | -3.9% |
| Close (Report Date) | $23.12 | +0.4% |
| Close (End of Week) | $22.43 | -2.6% |
Stock Price Impact
GPGI showed resilience on report day, dipping 3.9% to an intraday low of $22.14 before staging a full recovery to close at $23.12, actually finishing slightly above the prior day's close. However, selling pressure built in the sessions that followed, and by Friday shares had settled at $22.43, down 2.6% on the week. The muted initial reaction may reflect GPGI's relatively low float and the complexity of the allegations, which require investors to evaluate Husky Technologies' financial metrics against industry norms. The gradual decline through week's end suggests the market is still digesting the forensic accounting claims and governance concerns.
About The Company
GPGI, Inc is a NYSE-listed industrial conglomerate that recently completed the acquisition of Husky Technologies, a manufacturer of injection molding systems for the plastics industry. The Husky acquisition, valued at over $5 billion, now accounts for more than 70% of GPGI's pro forma EBITDA, making the combined entity heavily dependent on a single business unit. GPGI is chaired by David Cote, the former Honeywell CEO, and is affiliated with Resolute Holdings (RHLD), a publicly traded management company that collects fees tied to GPGI's EBITDA. The company trades at a significant premium to industrial peers, with a price-to-sales ratio of approximately 41.5x versus a peer average of 2.8x.
Key Points from the Report
- Free cash flow inflated ~90%: Jehoshaphat alleges Husky's reported free cash flow is overstated by approximately 90% through the conflation of different FCF definitions, making growth projections appear attainable when they are not.
- Parking lot revenue scheme: Former Husky employees described shipping products to the company's own parking lot to justify revenue recognition, a practice the report characterizes as a classic channel stuffing tactic.
- Dual C-suite departure: Both Husky's CEO (Bradley Selleck) and CFO (John Linker) resigned within weeks of the GPGI acquisition closing, with no replacements identified, suggesting the departures caught even GPGI by surprise.
- Self-enriching fee structure: GPGI pays management fees (2.5% of EBITDA quarterly) to Resolute Holdings, a company controlled by GPGI Chairman David Cote's circle. The report alleges this structure incentivizes aggressive deal-making over shareholder value.
Read the Full Report Summary →
Blue Orca Capital Short Report on Sigma Lithium Corporation
| Metric | Price | Change |
|---|---|---|
| Close (Day Before) | $16.37 | — |
| Low (Report Date) | $13.90 | -15.1% |
| Close (Report Date) | $16.22 | -0.9% |
| Close (End of Week) | $14.41 | -12.0% |
Stock Price Impact
Blue Orca's report triggered the most dramatic price action of the week. Sigma Lithium shares collapsed 15.1% intraday to $13.90, one of the sharpest single-day reactions to a short report in recent months. Remarkably, the stock staged a near-complete intraday recovery, closing at $16.22, down just 0.9% on the day. But that bounce was short-lived. Over the following sessions, shares tumbled again, ending the week at $14.41 for a 12.0% weekly decline. The whipsaw pattern, with aggressive buying on the initial dip followed by sustained selling, suggests early bargain hunters were overwhelmed as institutional investors processed the severity of the undisclosed litigation and liquidity concerns.
About The Company
Sigma Lithium Corporation is a NASDAQ-listed lithium mining company focused on the development and operation of its Grota do Cirilo lithium deposit in Minas Gerais, Brazil. The company positions itself as a producer of "green lithium," emphasizing environmentally sustainable extraction practices. Sigma's operations are centered on a single mine, making it heavily dependent on continued production at that site. The company has faced significant executive turnover, cycling through five CFOs in three years and seven independent director departures since the mine opened. At the time of the report, Sigma had $6.1 million in cash against $54.8 million in payables and a $100 million loan due in late 2026.
Key Points from the Report
- Dangerous mine wall deviations: A 2025 technical report alleges Sigma deviated from its approved mine plan, building pit walls up to 65 meters, nearly three times the 24-meter permitted limit, creating conditions described as having a "high potential for loss of human life."
- Systematic non-disclosure of material litigation: Blue Orca uncovered multiple lawsuits from Brazilian prosecutors, a former mining contractor suing for approximately $22 million, and over a dozen additional creditors, none of which were disclosed to investors during the Q3 FY2025 earnings call.
- Liquidity crisis: The company held just $6.1 million in cash against $54.8 million in payables, the ~$22 million contractor lawsuit, a $2 million default judgment, and a $100 million loan due in 2026. Sell-side analysts estimate $200 million is needed for near-term obligations.
- Federal license annulment threat: Federal prosecutors issued formal demands to suspend and annul Sigma's mining and environmental licenses for failure to consult indigenous communities, the same legal theory that previously shuttered Vale's Onça Puma project for over two years.
Read the Full Report Summary →
Hunterbrook Media Short Report on Hercules Capital
| Metric | Price | Change |
|---|---|---|
| Close (Day Before) | $15.43 | — |
| Low (Report Date) | $14.10 | -8.6% |
| Close (Report Date) | $14.21 | -7.9% |
| Close (End of Week) | $14.21 | -7.9% |
Stock Price Impact
Hercules Capital shares fell 8.6% intraday to $14.10 following the Hunterbrook report, and unlike several other targets this week, there was virtually no bounce. The stock closed at $14.21, down 7.9%, and held that level through Friday's close. The lack of any meaningful recovery is notable and suggests income-focused shareholders, who own HTGC primarily for its dividend yield, were genuinely rattled by the report's arguments about phantom PIK income, razor-thin dividend coverage, and the "Saylor Spiral" premium risk. The report landed on a Friday, so the full institutional response will likely play out in the sessions ahead.
About The Company
Hercules Capital, Inc. is a NYSE-listed business development company (BDC) and the largest nonbank venture lender in the United States, headquartered in San Mateo, California. Founded in 2003, the company has made over $25 billion in commitments since inception, providing debt financing primarily to technology, life sciences, and sustainable and renewable energy companies. Hercules is led by CEO and CIO Scott Bluestein, who took the helm in 2019. The company operates at approximately a 1:1 debt-to-equity leverage ratio and had approximately 182.7 million shares outstanding as of December 31, 2025. Roughly 70% of the company's net asset value is backed by software debt, according to the report.
Key Points from the Report
- $1.5B in software loans marked at par: The report alleges Hercules valued $1.5 billion in software loans at 100 cents on the dollar in its February 10-K, even as $18 billion in broadly syndicated software loans have plunged into distressed territory industry-wide.
- Phantom PIK income: PIK (payment-in-kind) income doubled to $55.9 million in 2025, but actual cash collected crashed 73% to just $4.9 million, representing only 9% of what was booked. Outstanding PIK receivables nearly tripled to $109.1 million.
- Premium-dependent flywheel risk: Hunterbrook draws a parallel to MicroStrategy's bitcoin premium collapse, arguing that Hercules' premium to NAV has already compressed from approximately 60% to 25%, and that a further decline could trigger a destructive reverse flywheel.
- Unique credit metric: Hercules reports a 3 basis point cumulative loss rate that nets equity and warrant gains from IPO-era exits against loan losses, a methodology the report says it could not identify at any other major BDC.
Read the Full Report Summary →
Activ8 Newswire
Dan Loeb declares "the lost art of short selling" is back — The Third Point CEO told the iConnections Global Alts conference in Miami that 2026 is the first year in a long time where his fund is generating profits and alpha on both longs and shorts, as the Magnificent Seven tech stocks stumble. Source: Financial Times
Trump Media accuses Jane Street, Citadel, and others of naked short selling — Trump Media & Technology Group reportedly sent letters to Congress calling for a full investigation into major trading firms over alleged naked short selling of DJT shares, with CEO Devin Nunes claiming four firms were responsible for over 60% of extraordinary trading volume. Source: Coinpedia
Short sellers target UK REIT Land Securities in bet against office demand — Hedge funds are building short positions against Land Securities, the UK's largest REIT, betting that AI-driven white-collar redundancies will undermine London office demand and pressure the commercial landlord's valuations. Source: The Times
MicroStrategy becomes one of America's most shorted stocks — FT Alphaville examines the growing short interest piling up against Michael Saylor's MicroStrategy, questioning whether the company's aggressive bitcoin acquisition strategy will prove visionary or disastrous in a "mirror mirror" moment for crypto's poster child. Source: Financial Times
