Muddy Waters Shorts GSX Techedu Inc
Short seller Muddy Waters has announced a short position in GSX Techedu, a a technology-driven education company. MW says it downloaded GSX's data from more than 200 paid K-12 classes, covering 54,065 unique users, and claims that approximately 70% of GSX users are fake, and that a former GSX manager corroborated their analysis.
MW says that "GSX is a massive loss-making business" and that long holders of GSX face the risk that margin lenders will be forced to aggressively sell the stock, crashing the price.
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