Short-seller Hindenburg Research has taken a short position in Block, a payments company led by Twitter founder Jack Dorsey. Hindenburg Research is known for investigating and publishing reports on companies it believes are engaged in fraudulent activity.
In a statement, Hindenburg Research claimed that Block's business model is "significantly flawed" and that the company's claims about its technology are "overstated". The statement also raised questions about Block's partnerships and acquisitions, suggesting that they may have been made to create the appearance of growth and value.
Block has not yet responded to Hindenburg Research's claims. The company has been in the news recently due to its decision to allow users to send and receive Bitcoin via its platform.
Short-selling is a strategy in which investors borrow shares of a stock and sell them, hoping to buy them back at a lower price and profit from the difference. Short-sellers often target companies that they believe are overvalued or engaged in fraudulent activity.
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