This week highlighted the expanding reach of activist short sellers as they systematically target vulnerabilities across multiple sectors. Our featured analysis explores how institutional short sellers have turned their analytical firepower on the cryptocurrency ecosystem, dismantling inflated valuations and questionable business models as scrutiny intensifies in the digital asset space. Meanwhile, three new activist reports demonstrated the breadth of current investigative activity: Morpheus Research exposed alleged illegal drilling operations by Collective Mining in Colombia, Ningi Research uncovered complex accounting irregularities at financial services firm Marex Group, and Ragnarok Research challenged the legitimacy of an AI chip company's, Blaize Holdings, transformative contract announcement.

Ningi Research Report on Marex Group plc

Report Impact on Stock Price

Ningi Research's report had a significant negative impact on MRX shares, which fell from $37.64 the day before publication to an intraday low of $33.13 on release day. The stock closed at $35.31 on the report day and finished the week at $35.41, representing a 5.9% decline from pre-report levels.

Who is Marex Group plc?

Marex Group plc is a diversified financial services group specializing in brokerage, clearing, and market-making across multiple asset classes including commodities, equities, and financial products. Established from the remnants of Refco in 2006, the company has pursued rapid expansion through acquisitions and is publicly listed on NASDAQ.

Key Points from the Report

• Marex allegedly used Luxembourg-based fund structures to manipulate earnings and hide substantial derivative risks exceeding $930 million

• The company inflated operating cash flow by including debt issuance, with reported positive $1.2 billion in 2024 adjusting to negative $150 million under correct accounting

• Conflicting debt figures of $2.1 billion and $2.6 billion appear in SEC filings, complicating assessment of true leverage and financial health

• Market Making division reports extraordinary profits that vastly exceed industry peers, with positive income despite 86% collapse in trade volumes

• Repeated restatements across years reveal systemic control failures and unreliable financial reporting practices

  Read our full summary here

Morpheus Research Report on Collective Mining Ltd.

Report Impact on Stock Price

The Morpheus Research report initially triggered selling pressure in CNL shares, which dropped from a $9.42 close the day before to an intraday low of $8.30 on release day. However, the stock recovered to close at $10.05 on the day of the report and finished the week at $9.53, representing a modest 1.2% gain from pre-report levels.

Who is Collective Mining Ltd.?

Collective Mining Ltd. is a C$1.1-billion Canadian mining company focused on exploring mineral deposits in Colombia, founded by Chairman Ari Sussman who previously led Continental Gold. The company is pre-revenue with one material exploration project called the Guayabales Project, featuring the Apollo target discovery that represents an estimated 93% of the company's net asset value.

Key Points from the Report

• The bulk of exploration activities for the flagship Apollo target is allegedly occurring on untitled land where mining activities are strictly prohibited under Colombian law

• Three of Collective's drill pads appear to have been constructed entirely on unauthorized land, not just drilling into untitled areas from legal positions

• Drilling activities allegedly occur on or near "riparian forest buffers" where mining is restricted for environmental protection

• Colombia has demonstrated swift enforcement against unauthorized mining, with companies like Fura Gems ordered to cease operations after operating outside concession boundaries

• Chairman Ari Sussman's controversial past at Colossus Minerals in Brazil, where the company faced corruption allegations and had its mining license cancelled in 2014

  Read our full summary here

Ragnarok Research Report on Blaize Holdings

Report Impact on Stock Price

The Ragnarok Research report triggered sharp selling in BZAI shares, which declined from a $3.44 close the day before to an intraday low of $3.11 on publication day. The stock closed at $3.20 both on the report day and at week's end, representing almost a 7.0% decline from pre-report levels despite the stock having previously surged 80% on the initial contract announcement.

Who is Blaize Holdings?

Blaize Holdings is an AI chip company that reported just $1 million in revenue during Q1 2025 despite maintaining a market capitalization of approximately $400 million. The company recently announced a transformative $120 million agreement with Starshine Computing Power Technology for scalable hybrid AI solutions, representing a contract value that dwarfs the company's current revenue by over 100x.

Key Points from the Report

• The $120 million contract represents 120x the company's quarterly revenue, creating extreme valuation questions about the deal's legitimacy

• Starshine Computing Power Technology's website was allegedly registered just two weeks before the contract announcement, raising red flags about the customer's authenticity

• The supposed customer's website contains numerous stock photos and questionable content rather than legitimate business information

• Timeline inconsistencies and hastily created digital presence suggest the transformative deal may not be genuine

• BZAI's extreme 300x price-to-sales valuation combined with minimal revenue base creates a highly concerning risk scenario for investors

  Read our full summary here

Short Sellers in the Crypto World: A Comprehensive Analysis Activist short sellers have turned their analytical firepower on the cryptocurrency sector, systematically dismantling inflated valuations and questionable business models across digital asset companies as institutional scrutiny intensifies in this rapidly evolving market.

• Marex Group plc issued a swift rebuttal to Ningi Research's investigative report, dismissing the allegations as a 'malicious' attempt at share price manipulation while defending its financial reporting standards and corporate governance practices.

• Collective Mining Ltd. issued a comprehensive defense against Morpheus Research's allegations of illegal drilling activities, asserting full compliance with Colombian mining law while acknowledging the existence of small 'incomplete cells' between titles that the company claims are common industry issues being addressed by authorities.

• ABC News reported that federal prosecutors dropped fraud charges against a former Republican lawmaker who had retained Brad Bondi, brother of Attorney General Pam Bondi and defense attorney for pardoned Nikola founder Trevor Milton, just weeks after his sister's nomination to lead the Justice Department.

• Transport Topics reported that Austin-based Hyroad Energy acquired 113 hydrogen fuel cell trucks and all intellectual property assets from bankrupt Nikola Corporation for $3.85 million, marking a significant development in the aftermath of the troubled EV manufacturer's collapse following founder Trevor Milton's fraud conviction.

• GigaCloud Technology agreed to a $2.75 million settlement to resolve investor claims that the company misled shareholders about its AI capabilities and revenue sources, following damaging short-seller reports from Culper Research and Grizzly Research that alleged ties to executive-linked shell companies.

• The Des Moines Register reported that the family of a 13-year-old West Des Moines girl is suing Roblox after she was allegedly groomed, kidnapped, and sexually assaulted by a man she met on the gaming platform, adding to mounting lawsuits against the company that Hindenburg Research previously described as an "X-rated pedophile hellscape.

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