short-seller

Short seller CapitalWatch apologized and revised a report alleging financial crimes by AppLovin shareholder Hao Tang, retracting inaccuracies and misinformation. This led to a 14% surge in AppLovin shares. AppLovin had previously demanded a retraction. Despite retracting specific claims, CapitalWatch maintains its overall financial assessment of AppLovin remains unchanged. AppLovin has faced prior scrutiny from other short sellers.

AppLovin has issued a cease and desist letter to short-seller CapitalWatch, calling its report alleging the ad-tech firm functions as a “digital laundromat” for criminal syndicates “defamatory” and “baseless.” The company vehemently denied any ties to individuals indicted for financial crimes, including Hao Tang and Chen Zhi, challenging CapitalWatch to provide evidence. This response follows similar criticisms from other short-selling firms and underscores the intense scrutiny the ad-tech sector faces.