Shockwaves as Short-Seller CapitalWatch Retracts Controversial Report on AppLovin Shareholder: A Game-Changer for Investors!
Short seller CapitalWatch has issued a public apology and revised a controversial report that accused a principal shareholder of AppLovin, Hao Tang, of involvement in financial crimes. The company’s original findings, released last month, suggested dubious connections between Tang and various criminal entities. However, CapitalWatch has now admitted these claims were inaccurate.
In an apology posted on X, CapitalWatch acknowledged, “Descriptions asserting direct connections between Mr. Tang and Chen Zhi, Prince Group, Jin Bei Group, Tang Jun, and Yang Zhihui were inaccurate and failed to meet our publication standards.” The report’s inaccuracies prompted the short seller to retract any passages directly relating to Tang, emphasizing its commitment to correcting misinformation and protecting the legal rights of all parties involved. Nonetheless, the original report remains accessible on their website.
This follows a cease and desist letter sent to CapitalWatch by AppLovin’s attorney, Alex Spiro, two weeks ago, demanding a retraction of what the company labeled “defamatory and baseless” allegations. Spiro, known for representing high-profile clients, including Elon Musk, reinforced the seriousness of the claims directed at AppLovin.
After receiving the cease and desist letter, CapitalWatch initially stood behind its report, asserting that its conclusions were based on a rigorous six-month investigation backed by various documented sources. However, in its recent apology, the short seller clarified that it “erroneously associated” an unrelated ruling from the Court of Bordeaux with Tang.
Despite retracting these specific allegations, CapitalWatch maintained that its overall assessment of AppLovin’s financial standing remains unchanged, indicating its intention to continue publishing reports on the company. “CapitalWatch extends its sincere apologies to Mr. Tang for the distress caused and the potential impact on his personal reputation,” the company stated.
Representatives for Tang, AppLovin, and CapitalWatch have been approached by CNBC for further comments on the situation.
AppLovin, a leading player in the advertising industry, has faced scrutiny from various short sellers in the past, including firms such as Muddy Waters, Fuzzy Panda, and Culper Research. CEO Adam Foroughi has publicly refuted these allegations, expressing disappointment at what he describes as “nefarious” attempts to undermine the company for personal gain. Following claims made last year by Fuzzy Panda and Culper, Foroughi stated, “It’s disappointing that a few nefarious short-sellers are making false and misleading claims aimed at undermining our success and driving down our stock price.”
Since going public in April 2021, AppLovin’s stock has skyrocketed, rising from an initial public offering price of around $65 per share. In 2024 alone, the stock surged over 713%, and it now trades above $450 per share. This remarkable performance underscores the company’s resilience against external criticisms as it continues to navigate a challenging market landscape.
As the situation develops, stakeholders remain attentive to both AppLovin’s performance and the implications of the recent retraction from CapitalWatch, signaling the ongoing complexities in the financial reporting and investment landscape.
Original Source: https://www.cnbc.com/2026/02/09/short-seller-capitalwatch-retraction-applovin-hao-tang.html
Category :
Tags:
Publish Date: 2026-02-09 23:10:00
