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Block loses 20% of value as Hindenburg Research alleges fraud

finance.yahoo.com

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Re: Block loses 20% of value as Hindenburg Research alleges fraud

#11

Post by phnofive »

> Dorsey [...] told investors about the large number of songs named after Cash App and described how music had become a way to share with others how valuable the app is to them personally, providing them with “so much utility.”

> A review of songs mentioning Cash App shows that the artists are not generally rapping about Cash App’s smooth user interface and robust software integration toolkit.

> Instead, lyrics describe how easy it is to move money through Cash App to facilitate fraud, traffic drugs, or even pay for murder.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#12

Post by bobnamob »

benjaminwootton wrote: post #10

“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.” I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this repo…

That’s Hindenburg’s MO. Extensive research -> short position -> publication of research

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#13

Post by Closi »

benjaminwootton wrote: post #10

“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.” I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this repo…

It’s legal but you must talk about facts and not make anything up, and you must act without insider information.

This is why the report is surgical in its wording.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#14

Post by mschuster91 »

benjaminwootton wrote: post #10

“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.” I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this repo…

It actually is legal and the way how Hindenburg Research (and other popular/infamous shortsellers) make money: Research and expose fraud to hold companies accountable, with a (massive) financial stake to be correct in the research.

Personally, I used to be quite antagonistic to shortsellers, but at least the ones holding onto the principles of journalistic integrity and good research provide good value to society. Just look at Wirecard.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#15

Post by PaywallBuster »

SeanAnderson wrote: post #3

It seems like a pretty wild time to be on the offensive against American fintech companies. No real comment on the merits of their research (yet), just a little shocked at the timing.

Doesn't look like Block's collapse would cause any issues with the financial system

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#16

Post by Closi »

churchill wrote: post #7

Block published a press release [0] saying they intend to sue. But, that article by Hindenburg seems quite in-depth and they'll have a hard time squeezing themselves out of this. [0]: https://investors.block.xyz/news/news-details/2023/Blocks-Re...

Worth noting that the title of this HN post is a little misleading - and Hindenburg actually have not accused Block of fraud (only of facilitating others to commit fraud through their platform).

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#17

Post by chewz »

benjaminwootton wrote: post #10

“ Initial Disclosure: After extensive research, we have taken a short position in shares of Block, Inc. (NYSE: SQ). This report represents our opinion, and we encourage every reader to do their own due diligence. Please see our full disclaimer at the bottom of the report.” I’m surprised that it’s legal to short sell then go on the attack. If it is, imagine having the cojones to do that and then go live with this repo…

What I am surprised of is how it is legal to have long position in stocks and then lie and pretend to increase the company value...

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#19

Post by pavlov »

phnofive wrote: post #11

> Dorsey [...] told investors about the large number of songs named after Cash App and described how music had become a way to share with others how valuable the app is to them personally, providing them with “so much utility.” > A review of songs mentioning Cash App shows that the artists are not generally rapping about Cash App’s smooth user interface and robust software integration toolkit. > Instead, lyrics descr…

Dorsey is a big Bitcoin fan, so that’s the kind of utility he appreciates.

Coming soon: the CashApp ransomware API.

Re: Block loses 20% of value as Hindenburg Research alleges fraud

#20

Post by mschuster91 »

SeanAnderson wrote: post #3

It seems like a pretty wild time to be on the offensive against American fintech companies. No real comment on the merits of their research (yet), just a little shocked at the timing.

As a German, I used to think the same back when Wirecard was first attacked - and look where that ended.

Right now, the financial system is extremely unstable - bad actors with an awful lot of exposure have been exposed, and a lot of people are like sharks in the water, smelling blood. It looks like we're due for another come-to-Jesus moment in the banking scene, they haven't learned enough from 2008.

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