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Block: Inflated user metrics and “frictionless” fraud facilitation

hindenburgresearch.com

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Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#101

Post by hef19898 »

noloblo wrote: post #90
noloblo wrote: post #17

Earlier quoted context omitted.

72$ puts expiring Friday are 2.54$ 60$ puts expiring this Friday March 24 are 25 cents at yesterday close So if they open at 6.54$ and 1.25$ respectively the short seller (hindenberg) potential gains from sq block short via short term puts are 6.54-2.54 = 4x100 = 400$ per contract 1.25-.25 = 1*100 =100$ per contract If they had bought 1000 contracts of each that is 400k and 100k respectively for the 72$ and 60$ sq pu…

So for 72 puts they opened at 13.54 and hence it's 1100 $ gain per contract The 60 puts are 3.25$ hence gain is 300$ per contract Assuming hindenburg bought a 1000 of each 1100000 on the 72 puts and 300000 on the 60 puts as Sq block is now trading at 58$ much to jacks chagrin That's a cool 1.4 mn $ Is this legal if so why isn't everyone doing it?!

Because it is extremely risky, even if you are right, and extremely capital intensive. That being said, there are loads of short sellers out there doing exactly that, all the time, with all kinds of companies.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#102

Post by calvinmorrison »

hoofhearted wrote: post #89
jstx1 wrote: post #65

Earlier quoted context omitted.

I don't think you have anyone to blame if you give your phone with a logged in money app to a stranger who is begging for money.

It’s a high pressure situation in the middle of rush hour traffic. They like to target unsuspecting older white people, and unaware females. If you get aggressive, they will spit on your window, break your wipers off, and hit your car. Things can get really ugly if you get out of your car and try to confront them: https://www.thebaltimorebanner.com/community/criminal-justic...

Cashapp doesnt bear the responsability of highway robbermen

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#104

Post by finfrastrcuture »

Mizoguchi wrote: post #76

Lol OK.. Nathan Anderson is the founder of Hindenburg Research, a New York-based investment management firm, and a forensic financial investigator that is famous for releasing reports on alleged wrongdoing by companies. When publishing some of these reports, his company profits by short selling the target company's stocks (that is, by making a bet in securities markets that the price of the company's shares will decl…

Fact. But you left out the part where it turns out they've been right about their exposes.

Its like with Private Equity. A part of me hates the concept and much of what's out there, but when done correctly it brings efficiency to the market.

Basically, short-sellers, PE, etc. are all just more ways of monetizing investigative journalism. They're like a 'virus' for capitalism, forcing good behavior and punishing the bad.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#105

Post by macintux »

user3939382 wrote: post #79

FYI if anyone is interested I can prove it -- Cash App is engaged in a massive stock trading fraud. I noticed one day that my books were off (down) by 1 penny. When I dug into it, I figured out that Cash App is providing their customers with conflicting reports for their stock sales. In the app, the sales report rounds pennies up, in the actual sale, whose records are only available through more complex data export p…

You reported this to the SEC, right?

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#108

Post by hoofhearted »

bfeynman wrote: post #68
hoofhearted wrote: post #50

Earlier quoted context omitted.

Correct. A scam here in Baltimore that keeps occurring is that the squeege kids will run up on someone unsuspecting and start cleaning their windshield. They will pressure the driver for a tip, and the driver will say they don’t have cash of course. They will say that’s cool, you can send me a tip. They ask the driver for their phone so they can look up their cashapp for them, and bam the driver got scammed. What’s h…

That is entirely on you if you give away your phone to those kids. I would think they would just run away with it

You’re minimizing major fraud being committed by juveniles, and it’s easy money for them lol.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#109

Post by JumpCrisscross »

likecarter wrote: post #62
johngladtj wrote: post #54

Earlier quoted context omitted.

How does it ruin their reputation as short sellers?

Putting out a low-quality report?

> a low-quality report

Block’s main product not only overstating its numbers but also wilfully facilitating money laundering and fraud could be a company-ending problem.

Re: Block: Inflated user metrics and “frictionless” fraud facilitation

#110

Post by hef19898 »

chii wrote: post #42
overthrow wrote: post #24

I didn't know Square had changed their name to Block. Looks like it happened in December 2021: https://investors.block.xyz/news/news-details/2021/Square-In... That said this really seems overblown. The report seems to mostly just talk about Cash App. Square Payments, Weebly and TIDAL are not even mentioned. Afterpay is mentioned but that was a 2022 acquisition so the problems likely predate Block's involvement. It fe…

> It feels weird that they're using Cash App to indict the company as a whole. they profit off shorting. So it makes sense to target them if the company has _some_ issues with fraud, even if it's a small part of their business, as it hasn't been priced in yet before this news breaks and people are positive about the company. They aren't doing a public service or anything. It's a reason why companies like credit suiss…

Credit Suisse was massively shorted, no idea if Hindenburg did as well.
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