Weekly Wrap 2/8/2026
Happy Super Bowl Sunday. While most of the country will spend today debating pass interference calls and halftime performances, we spent the week watching a different kind of contact sport. Three activist short sellers published new reports across three very different sectors: quantum computing, defense technology, and uranium mining. The allegations ranged from phantom Pentagon contracts and a secret Korean counterpart operating above a restaurant to an insider enrichment scheme disguised as a uranium mine. If you like drama, unpredictability, and investigative deep dives, this week delivered.
- This Week's Reports: Three new reports dropped this week. Wolfpack Research targeted IonQ, Inc. (IONQ), alleging that up to 86% of the quantum computing company's revenues came from secretive backdoor congressional earmarks that have since been defunded, with the stock finishing the week down -9.05%. Grizzly Research went after Electro Optic Systems Holdings (EOS.AX), identifying the secret counterpart to a stock-doubling $80M Korean contract as a 3-employee agricultural drone company, sending shares down -20.63% by week's end. Culper Research published on NexGen Energy (NXE), calling it an insider enrichment vehicle where executives have extracted C$140M+ while the company remains pre-revenue after 14 years. NXE dipped -11.10% intraday before recovering to close the week down just -0.36%.
- New on Activ8Insights.com: We published a new guide in our Learn section breaking down how we distinguish the different types of investigators in the short selling space and why it matters: Different Types of Investigators and Why It Matters
- Around the Short Selling World: It was another eventful week beyond our featured reports. Carvana continues to be a lightning rod after Gotham City Research's recent allegations. The crypto treasury trade is unraveling. And AppLovin faces yet another short seller attack, this time from CapitalWatch, with allegations far more serious than previous rounds. More on all of this in the Activ8 Newswire below.
This Week's Reports
Wolfpack Research Report on IonQ, Inc.
| Metric | Price | Change |
|---|---|---|
| Close (Day Before) | $38.47 | — |
| Low (Report Date) | $33.63 | -12.6% |
| Close (Report Date) | $35.34 | -8.1% |
| Close (End of Week) | $34.99 | -9.0% |
Report Impact on Stock Price
IonQ shares took an immediate hit when Wolfpack Research published its report on the morning of February 4th. The stock dropped as much as 12.58% intraday, falling from a prior close of $38.47 to a low of $33.63. Buyers stepped in during the afternoon, but the recovery was limited. Shares closed the day at $35.34, down 8.14%. Selling pressure continued through the rest of the week, with the stock closing Friday at $34.99, a weekly decline of 9.05%. The sustained weakness suggests the market is taking Wolfpack's allegations seriously, particularly ahead of IonQ's Q4 and full-year 2025 earnings report scheduled for February 25th.
Company Overview
IonQ is one of the most prominent publicly traded quantum computing companies. Headquartered in College Park, Maryland, the company develops trapped-ion quantum computers and sells access through cloud platforms including AWS, Azure, and Google Cloud. IonQ went public via a SPAC merger in 2021 and has since expanded through acquisitions including Capella Space (satellite imaging), Vector Atomic (atomic clocks), and most recently SkyWater Technology ($1.8B). The company reported revenues on pace to reach $106M-$110M for 2025 but posted a net loss of $1.5 billion last year.
Key Points from the Report
- Wolfpack alleges up to 86% of IonQ's 2022-2024 revenues came from Pentagon contracts obtained through secretive congressional earmarks, not genuine commercial demand. Those political patrons lost control of Congress after the 2024 election, and IonQ's earmarks have been defunded for two consecutive fiscal years, creating a "$54.6 million black hole."
- Eight insiders allegedly sold or created plans to sell $396.6M in stock during March 11-14, 2025, precisely when Congress voted to cut IonQ's funding but before the funding tables became public on March 19.
- IonQ acquired non-quantum businesses (Capella Space, Vector Atomic, SkyWater Technology) to mask the loss of government quantum revenue, according to Wolfpack, while these acquisitions worsened operating cash flow from -$33M to -$123.1M in a single quarter.
- DARPA reportedly determined IonQ's technology lacks a viable path to industrial utility within 10 years. IonQ then acquired Oxford Ionics for $1.6B, which Wolfpack alleges was done to claim a competitor's technical advancement as its own.
Grizzly Research Report on Electro Optic Systems Holdings Ltd
| Metric | Price (A$) | % Change |
|---|---|---|
| Close (Day Before) | 7.56 | — |
| Low (Report Date) | 7.11 | -5.9% |
| Close (Report Date) | 7.17 | -5.2% |
| Close (End of Week) | 6.00 | -20.6% |
Report Impact on Stock Price
Electro Optic Systems took a measured hit on the day of the Grizzly Research report, with shares falling from A$7.56 to a low of A$7.11, a 5.95% intraday decline. The stock closed the day at A$7.17, down 5.16%. But the real damage came in the days that followed. By the end of the week, EOS shares had cratered to A$6.00, a devastating 20.63% weekly decline. This was the largest stock decline of the three reports this week, suggesting the market found Grizzly's investigative work on the mysterious Korean contract counterpart particularly credible.
Company Overview
Electro Optic Systems is an Australian defense technology company specializing in electro-optic and laser systems. The company has faced a turbulent stretch financially. It sold its most profitable unit, EM Solutions, for A$160M to repay debt that carried interest rates as high as 26%. Post-sale, revenue dropped 58% year-over-year and net losses surged to A$44.2M in H1 2025. The company's stock had previously doubled on the announcement of a US$80M Korean laser contract, the counterpart to which management kept secret.
Key Points from the Report
- Grizzly identified the secret counterpart to EOS's headline US$80M Korean laser contract as Goldrone Co., Ltd., a near-defunct South Korean agricultural drone company with just 3 employees, peak revenue of US$476K, and offices above a restaurant. EOS management described Goldrone as an "Industrial Partner" and claimed confidentiality, while Goldrone had publicly announced the contract in Korean media.
- The report alleges Goldrone has been essentially defunct since 2019, with its drone training business shut down, its phone number out of service, and the company currently trying to raise just US$343K to stay afloat.
- Grizzly claims the CFO's assertion that MARSS (acquired for US$36M) generated €240M over 5 years does not match UK filings showing only €66M from 2021-2023. The implied €174M in 2024-2025 revenue would exceed EOS's own total revenue.
- EOS was previously investigated and fined by Australian regulators for disclosure failures, establishing what Grizzly calls a pattern of misleading investor communications.
Culper Research Report on NexGen Energy Ltd.
| Metric | Price (S) | % Change |
|---|---|---|
| Close (Day Before) | 11.08 | — |
| Low (Report Date) | 9.85 | -11.1% |
| Close (Report Date) | 11.04 | -0.4% |
| Close (End of Week) | 11.04 | -0.4% |
Report Impact on Stock Price
NexGen shares saw a sharp intraday selloff on the morning of February 6th, plunging 11.10% from $11.08 to a low of $9.85. But in a notable reversal, buyers aggressively stepped in and drove the stock nearly all the way back. NXE closed the day at $11.04, down just 0.36%. Since the report dropped on a Friday, the close-of-day and end-of-week numbers are identical. This is one of the strongest same-day recoveries we have tracked. It may reflect the uranium sector's loyal investor base, the pre-revenue nature of the company making valuation arguments less immediately impactful, or skepticism toward the short thesis on a company with a well-known flagship asset.
Company Overview
NexGen Energy is a Vancouver-based uranium development company that has been operating since 2011 without generating any revenue. The company's sole flagship asset is the Rook I project in Saskatchewan's Athabasca Basin, which contains the Arrow uranium deposit. NexGen claims a C$6.3B net present value for the project, with production targeted for 2030. The company carries a market cap of approximately $7.3B, trades at a 12.3x price-to-book ratio (vs. 1.8x industry average), and has cycled through seven CFOs since 2012.
Key Points from the Report
- Culper alleges NexGen's Rook I project NPV of C$6.3B is overstated by 43-62%, implying a true NPV of just C$2.4-3.6B. The targeted peak production of 29.7M lbs of uranium is called "impossible to achieve" because the critical A2-HG zone carrying 68% of total metal is thinner and less continuous than the company portrays.
- Ultra-high-grade assays were produced by a single drilling contractor and analyzed at a single lab, with no twin hole drilling or secondary lab confirmation ever conducted, raising questions about the reliability of the resource estimate.
- Insiders and affiliates have sold $275M in stock over three years, while named executives have extracted C$140M+ over the past decade. CEO Leigh Curyer alone has taken C$78.5M. Seven CFOs have cycled through the company since 2012.
- Pre-production capital cost estimates have already doubled from C$1.1B to C$2.2B, yet Culper argues costs remain materially understated. Key personnel who led the original Arrow deposit discovery have departed for smaller mining firms.
Activ8 Newswire
News from Around the Short Selling World
Carvana Wants to Become the Amazon of Autos
Bloomberg profiles Carvana's ambitions just days after Gotham City Research alleged the online auto retailer overstated earnings by about $1 billion through undisclosed benefits from DriveTime, controlled by the CEO's father.
Bloomberg
Short-Seller Claims IonQ Failed to Disclose Holes in Its Revenue
Fortune published an in-depth look at Wolfpack Research's report on IonQ, detailing the backdoor earmarks allegations and the $396.6M in insider stock sales that occurred while Congress was voting to cut the company's funding.
Fortune
A Short Seller Says IonQ Stock Revenue Is Not What It Seems
Barron's covered the Wolfpack Research report, examining how the loss of Pentagon earmarks could impact IonQ's revenue trajectory and what it means for investors ahead of the company's February 25th earnings call.
Barron's
The Crypto-Hoarding Strategy Is Unraveling
The Wall Street Journal reports that the corporate strategy of stockpiling Bitcoin, popularized by Michael Saylor's Strategy (formerly MicroStrategy), is now punishing companies as crypto prices decline, with Strategy's shares down 61% since Bitcoin's record high.
WSJ
Is It Really a Good Sign When Executives Buy Their Own Stock?
The Wall Street Journal analyzed 1,400 large insider stock purchases to determine whether executive buying actually signals future share price gains, a timely read given the insider selling allegations in both the Wolfpack and Culper reports this week.
WSJ
AppLovin Has Far More Worries Than a Short Seller's Report
Barchart examines how AppLovin's troubles extend beyond the latest CapitalWatch short report alleging money laundering ties, with Google's Project Genie AI gaming platform and broader ad-tech disruption posing structural threats.
Barchart
