Weekly Wrap Up: Sunday 2/1/26
Gotham alleges Carvana hid $1B+ via DriveTime. CVNA crashed 21% intraday. Plus: SIDU -35% on dilution, Ubiquiti-Russia ties, and a fake Microsoft "partnership." 6 reports.
The activist short selling world is buzzing this week, and make no mistake, Carvana is at the center of it all. Gotham City Research dropped a bombshell 70-page report on Wednesday, alleging that the S&P 500 member has overstated earnings by more than one billion dollars through undisclosed related-party transactions with DriveTime and Bridgecrest, both controlled by CEO Ernest Garcia III's father. The stock plummeted over 21% intraday before partially recovering. This marks the latest chapter in the ongoing scrutiny of the used-car giant, following Hindenburg Research's attack last year. Meanwhile, Hunterbrook Media continued their investigative journalism streak with two reports, one exposing Ubiquiti's alleged role in enabling Russian military operations despite US sanctions, and another questioning Richtech Robotics' Microsoft "partnership" which turned out to be a free training program. It was a particularly busy week for the research community with six total reports spanning everything from Latin American private equity valuations to satellite company dilution schemes.
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Quick Hits on the Reports Published:
6 new activist short reports released this week targeting companies across private equity, space technology, home security, networking equipment, used car retail, and robotics sectors
Snowcap Research targeted Patria Investments (PAX), alleging inflated valuations and AUM concerns, stock fell -14.81% for the week
Fugazi Research exposed Sidus Space (SIDU) as a "dilution machine" with circular related-party transactions, shares plunged -35.03%
Spruce Point Capital issued a 54-page report on Resideo Technologies (REZI), citing value-destructive M&A, down -2.86%
Hunterbrook Media accused Ubiquiti (UI) of enabling Russia's drone war, stock remarkably gained +0.44% at the end of the week
Gotham City Research dropped bombshell on Carvana (CVNA) alleging $1B+ overstated earnings, cratered -16.04%
Hunterbrook Media questioned Richtech Robotics (RR) Microsoft "partnership" claim, dropped -29.53%
New Activist Reports
Week of January 26 - January 31, 2026
Weekly Performance Summary
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(End of Week)
NASDAQ | Snowcap Research | January 26, 2026
Snowcap Research released a scathing report on Patria Investments, the Latin American alternative asset manager, alleging that key holdings are marked at 3-5x public peer multiples with potential downside of 54-100% to equity value. The report claims that nearly half of Patria's AUM may mature or roll off within three years, raising questions about the sustainability of management fees. Despite the serious allegations about inflated valuations and dividend pressure, PAX declined only 4.55% on the report date but continued sliding throughout the week, closing down 14.81%. The measured initial response suggests institutional investors are still digesting the detailed valuation analysis before taking decisive action.
Read Full SummarySidus Space Inc.SIDUNASDAQ | Fugazi Research | January 26, 2026
Fugazi Research labeled Sidus Space "The Black Hole Where Massive Amounts of Capital Get Sucked Into the Void," exposing what they describe as a circular related-party structure where the CEO simultaneously serves as landlord, lender, supplier, main shareholder, and main customer. The report highlights a staggering 6,426% share dilution, $130M+ capital burned since going public with only 3 satellites launched, and a newly filed $500M shelf registration that could more than double the float. With 49.6% of revenue coming from related parties and a company-acknowledged "going concern" warning, SIDU cratered 35.03% for the week, making it the worst performer among this week's targets.
Read Full SummaryResideo Technologies Inc.REZINYSE | Spruce Point Capital | January 27, 2026
Spruce Point Capital Management issued a comprehensive 54-page report on Resideo Technologies, the Honeywell spin-off, citing "seven years of broken promises" including $2B+ in value-destructive M&A, four CFOs and four CAOs since 2018, and a 37% decline in operating cash flow. The report questions the company's sudden pivot to a "split-up" strategy after years of claiming combined value, noting that the ADI President sold stock on the exact day the split-up was announced. With leverage at 5.5x and an estimated $100-250M needed to fix lingering ERP issues, Spruce Point sees 25-50% downside. Despite the detailed forensic analysis, REZI showed resilience with only a 2.86% weekly decline, suggesting the market may view the split-up positively.
Read Full SummaryUbiquiti Inc.UINASDAQ | Hunterbrook Media | January 27, 2026
Hunterbrook Media released an explosive investigative report alleging that Ubiquiti's products serve as "critical communications infrastructure" for Russian military operations in Ukraine despite US sanctions. The report claims Ukrainian sources estimate 80% of Russian radio bridges on the battlefield are Ubiquiti equipment, with nine Russian military units accused of war crimes having received the company's products. Despite the serious sanctions evasion allegations and potential regulatory exposure, UI remarkably finished the week UP 0.44%, making it the only target to post gains. The $34 billion company's "lean" distribution model appears to have insulated investor sentiment, though Hunterbrook notes this is not a legal defense under strict liability sanctions regimes.
Read Full SummaryCarvana Co.CVNANYSE | Gotham City Research | January 28, 2026
Gotham City Research dropped this week's most anticipated report, a 70-page deep dive alleging Carvana's 2023-2024 earnings are overstated by more than $1 billion through undisclosed related-party subsidies from DriveTime and Bridgecrest, both controlled by CEO Ernest Garcia III's father. Using FOIA-obtained documents, Gotham claims DriveTime burned $1B+ in cash while Carvana turned profitable, suggesting this is "no coincidence." The report alleges 20-40x leverage at DriveTime, $900M loan markdowns, and $352M extracted by Garcia II while the company bled cash. CVNA cratered 21.60% intraday to $374.55 before recovering to close the week down 16.04% at $401.11. Carvana called the report "inaccurate and intentionally misleading" and reconfirmed its February 18 earnings date despite Gotham predicting delays.
Read Full SummaryRichtech Robotics Inc.RRNASDAQ | Hunterbrook Media | January 29, 2026
Hunterbrook Media released their second report of the week targeting Richtech Robotics, exposing what they call a "textbook pump-and-dilute scheme." The report reveals that Richtech's headline-grabbing "Microsoft collaboration" was actually just a free one-week AI training program available to any customer, with Microsoft confirming to Hunterbrook there was "no commercial element." The company's stock had surged 44% on the misleading announcement before a dilutive private placement was announced the very next morning. With a $1B+ market cap on just $5M annual revenue (200x price-to-sales), losses of $3.12 for every $1 of revenue, and an unanswered prior "China Hustle" report from Capybara Research, RR dropped 29.53% for the week, the second-worst performer behind SIDU.
Read Full SummaryActiv8 Newswire
Recent articles and news from around the activist short selling world
Carvana Targeted by Short Seller Gotham, Sending Shares Tumbling
Carvana shares plummeted as much as 21% after Gotham City Research alleged the online used-car retailer overstated earnings by more than $1 billion through undisclosed benefits from related parties controlled by CEO Ernest Garcia III's father.
Source: Bloomberg
JPMorgan Just Revealed its Top Short Ideas. Time to Sell?
JPMorgan released its latest list of short ideas including Fortinet on competitive pressures and Imperial Oil on cycle-top concerns. The analysis comes as shorting stocks remains risky in the post-meme rally era where bearish bets can quickly turn painful.
Source: Yahoo Finance
Carvana Shares Fall 14% Following Short-Seller Accusations
The latest Gotham City report marks the second major short seller attack on Carvana in recent years, following Hindenburg Research's claims last year that labeled the company's turnaround a "mirage" propped up by unstable loans and accounting manipulation.
Source: CNBC
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