Hindenburg Research's latest victim is Twitter founder Jack Dorsey

Hindenburg Research knows its next victim. It is Jack Dorsey and his company Block $SQ, which allegedly cheated its users and investors. Will Hindenburg liquidate the former Twitter CEO like it did Adani?

Jack Dorsey is likely to be Hindenburg's next victim

Hindenburg Research became famous for its recent exposure and liquidation of Adani Enterpises. So it's clear that investors were eager for another expose. And it didn't take long.

It all started with this tweet:

https://twitter.com/HindenburgRes/status/1638632636250742787

A teaser that another big reveal was coming soon. Hindenburg didn't keep us guessing for long and rolled out a really big fish - Block $SQ, the company of noted visionary Jack Dorsey.

https://twitter.com/HindenburgRes/status/1638881786343063553

Shares promptly plunged as much as 19% at one point after well-known analyst and short-seller Hindenburg Research announced Thursday that the fintech company was its latest short. Hindenburg's full statement can be found here.

The company is currently -14.1%

It says Block has enabled criminal activity due to a lack of controls and highly overstates the number of its users, a key performance indicator. Hindenburg described Block's internal systems as a "'wild west' approach to compliance".

"Our two-year investigation concluded that Block systematically exploited demographic data," Hindenburg said in its report. The research company said the Block Cash App thrived by serving "unbanked" customers.

These unbanked customers were involved in criminal or illegal activity, the report claimed. Hindenburg also alleged that the Cash App 's compliance programs were inadequate. As part of its two-year investigation, Hindenburg spoke with several former employees who described how internal complaints were suppressed and user concerns were ignored, even as criminal activity and fraud allegedly ran rampant on its platform.

What is Hindenburg Reserach?

Hindeburg Research is an American investment firm that specializes in analyzing companies and financial markets. The company is known for its short positions, i.e., bets on the stock price of companies that it suspects of unethical practices, improper accounting or other problems. Hindeburg Research seeks to uncover and publish information about such companies to alert investors to the risks associated with their investments.

The company came to public attention through its research and reports that led to significant declines in the stock prices of some companies, such as Nikola, an electric truck company , and Clover Health, a health insurance provider. More recently, of course, Adani and now Block.

According to Bloomberg News calculations, Hindenburg has targeted about 30 companies since 2020, and their shares have lost an average of about 15% the following day. Six months later, their stocks were down an average of 26%. You really don't want to get in their crosshairs.

Hindenburg gained more attention after its January crushing report on billionaire Gautam Adani's business empire, which rocked the stocks and bonds of all 10 companies linked to Adani. The conglomerate's flagship company, Adani Enterprises, has plunged 48% since the report, even as the group denied Hindenburg's allegations of accounting fraud and stock manipulation.

https://www.youtube.com/watch?v=KyeFTgjfb30

Disclaimer: This is in no way an investment recommendation. It is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.