Weekly Wrap Up: Sunday 1/11/26
Happy New Year! BMF Reports targets TROO's $52M court judgment (stock rallies 16%), Utopia Capital's NBY thesis triggers record 159% weekly surge. December report is live.
Happy New Year! We took a couple weeks off for the holidays, but we're back and have a big year planned. Our Data Team and Journalistic Team are growing, and we're incredibly excited about the "Short World" in 2026. We kicked off the new year with our December 2025 Activist Short Selling Report, analyzing the final month of what proved to be a turbulent year for short sellers. This week delivered two reports and a truly unprecedented market reaction. BMF Reports targeted TROOPS Inc with damning allegations of court judgments and circular shell transactions, while Utopia Capital Research released a report on NovaBay Pharmaceuticals. The result? A week we'll be talking about for a long time: NBY surged 159.3% in one week following the short report, the highest post-report weekly gain in our tracking history. Meanwhile, industry news included Robinhood launching short selling capabilities on its Legend platform and the Financial Times examining the evolving short selling landscape.
This Week's New Reports
- BMF Reports alleges TROOPS Inc (TROO) operates a "closed-loop public shell" with $52M in Hong Kong court judgments, winding-up proceedings, and circular buyback transactions. Stock finished the week up 16.3% despite allegations of 80-90% downside
- Utopia Capital Research targeted NovaBay Pharmaceuticals (NBY) and the market responded by sending shares soaring 159.3% for the week, setting a new record for the largest weekly gain following an activist short report in our database
- December 2025 Activist Short Selling Report is now live. Head to our site for full metrics on the final month of a year that saw short sellers navigate an increasingly hostile market environment
Our final monthly report of 2025 covers 14 activist short campaigns, a 64.3% success rate, and crowns Fugazi Research as back-to-back Short King after their historic -92.6% hit on SMX.
Read Full ReportNew Activist Reports
TROOPS IncTROONASDAQ · BMF ReportsJanuary 6, 2026Stock Price Impact:
In a remarkable display of market defiance, TROO shares rallied 16.25% for the week despite BMF Reports predicting 80-90% downside. The stock briefly touched an intraday low of $3.81 (-4.75%) following the report's publication, but buyers quickly stepped in, pushing shares to close at $4.35 on report day, up 8.75% from the prior close. By week's end, the stock had extended gains to $4.65, hitting its 52-week high on the same week as a damning short report. This counterintuitive reaction underscores the unpredictable nature of activist campaigns in current market conditions.
About TROOPS Inc:
TROOPS Inc (NASDAQ: TROO) is a Hong Kong-headquartered holding company operating across money lending, property management, fintech solutions, and insurance consultancy services. The company markets itself as a diversified fintech with exposure to AI, blockchain, and cloud computing. Formerly known as SGOCO Group Ltd., TROOPS rebranded in November 2021. Founded in 2005, the company maintains operations in Hong Kong, mainland China, and Australia. BMF Reports characterizes the company as having cycled through multiple corporate identities as part of what they call a recurring "shell-based playbook."
Key Points from the Report:
- $52 million Hong Kong court judgment tied to alleged fraudulent asset transfers against TROO subsidiaries
- Active winding-up proceedings against company subsidiaries in Hong Kong courts
- $14.5M+ in unexplained cash outflows following reported cash balance of just $5.2M
- Circular buy-sell-buyback transactions with WLGS, a delisted shell company. BMF calls this "circle jerk as a service"
Stock Price Impact:
This one goes in the record books. NovaBay Pharmaceuticals surged an astonishing 159.27% in the week following Utopia Capital Research's short report, the largest weekly gain we have ever recorded for a company targeted by an activist short seller. After briefly dipping to $7.19 (-2.71%) on report day, shares exploded to close at $10.64 (+43.98%) and continued climbing throughout the week to finish at $19.16. The dramatic reversal demonstrates just how unpredictable short campaigns can be, particularly in speculative pharmaceutical names where catalysts can overwhelm short thesis timing.
About NovaBay Pharmaceuticals:
NovaBay Pharmaceuticals, Inc. (NASDAQ: NBY) is an Emeryville, California-based biopharmaceutical company focused on commercializing prescription and non-prescription products for the eye care market. The company's flagship product is Avenova, a prescription eye care solution containing the company's proprietary Neutrox formulation for conditions including blepharitis, meibomian gland dysfunction, and dry eye. NovaBay has historically struggled with profitability and has undergone multiple restructurings to focus on its core ophthalmic franchise.
Key Points from the Report:
- Utopia Capital Research released a short thesis on NovaBay Pharmaceuticals targeting the company's valuation and business fundamentals
- The report's timing coincided with significant market enthusiasm for the stock, which overwhelmed the short thesis
- NBY's 159% weekly gain represents the most dramatic short squeeze response in our tracking history
- Full report details available on Activ8Insights
Activ8 Newswire
Recent articles and news from around the activist short selling world
The Financial Times Examines the Evolving Short Selling Landscape
The FT takes a deep look at how activist short selling has evolved, examining the challenges and opportunities facing research-driven short sellers in an increasingly hostile regulatory and market environment.
Read Article →Robinhood Launches Short Selling on Legend Platform
Robinhood has announced short selling capabilities on its Legend trading platform, bringing the ability to bet against stocks to the retail trading app that became famous during the 2021 meme stock saga. The move represents a significant expansion of Robinhood's offerings for more sophisticated traders.
Source: RobinhoodWSJ Profiles Hunterbrook Capital's Journalism-Hedge Fund Model
The Wall Street Journal takes an in-depth look at Hunterbrook Capital's unique approach that pairs investigative journalism with hedge fund trading. The firm, founded by former journalists and traders, has pioneered a model where newsroom investigations inform trading decisions, blurring the lines between media and finance.
Read Article →© 2026 Activ8Insights. All rights reserved.
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