Block, Inc. shares tank on short seller report

Afterpay platform Block, Inc. has plunged as low as 21% after investment research firm Hindenburg Research alleged the company misled investors and facilitated fraudsters via its Cash App. The firm alleges Block overstated its user numbers and understated its customer acquisition costs, amongst some other pretty heavy stuff, but Block says the report has been designed to deceive and confuse investors. The American multinational technology conglomerate, headed by Jack Dorsey is already fighting back, saying it would explore legal action against Hindenburg, that has a focus on activist short-selling, which means an investor could profit if the value of the asset falls. The news also means Mr Dorsey’s has lost an estimated US$526M of his net wealth, his worst single-day decline since May.  Read More: #News #Investment #Technology #Tech #Afterpay #Grafa