Muddy Waters Capital does not render investment advice to anyone unless it has an investment adviser-client relationship with that person evidenced in writing. GSX: Small Classes, Big Lies (GSX US) May 28, 2020 On May 18th, we published our research on GSX in which we concluded that at least 70% of GSX’s purported users are fraudulent, and quite likely the real … Muddy Waters has made its core business holding short positions of Chinese companies on U.S. exchanges and exposing what they believe to be fraudulent activity. This website is owned by Muddy Waters Research. GSX has said Muddy Waters doesn’t understand its business model. If any provision of these Terms of Use is found by a court of competent jurisdiction to be invalid, the parties nevertheless agree that the court should endeavor to give effect to the parties’ intentions as reflected in the provision and rule that the other provisions of these Terms of Use remain in full force and effect, in particular as to this governing law and jurisdiction provision. GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters Based on the near total faking of users, we assume that the fraudulent portion of GSX’s revenue is at least equal to the percentage of fraudulent users, although it would not surprise us if the ASP on the real portion of GSX’s business is fraudulently inflated too. All reports are for informational purposes only. You agree that regardless of any statute or law to the contrary, any claim or cause of action arising out of or related to this website or the material on this website must be filed within one (1) year after the occurrence of the alleged harm that gave rise to such claim or cause of action, or such claim or cause of action be forever barred. You knowingly and independently agree to submit to the personal and exclusive jurisdiction of the state and federal courts located in San Francisco, California and waive your right to any other jurisdiction or applicable law, given that Muddy Waters Research and its affiliates are based in San Francisco, California. Despite their recent swoon, the … In no event shall Muddy Waters Research, Muddy Waters Capital or any Muddy Waters Related Persons be liable for any claims, losses, costs or damages of any kind, including direct, indirect, punitive, exemplary, incidental, special or, consequential damages, arising out of or in any way connected with any information on this website. On May 18, research firm Muddy Waters told the world it was short GSX Techedu stock. GSX, the online education firm that Muddy Waters called out in May, soared more than 200% through August before paring some of its gains. You represent that you have sufficient investment sophistication to critically assess the information, analysis and opinion on this website. Neither Muddy Waters Research nor Muddy Waters Capital will update any report or information on its website to reflect changes in positions that may be held by a Muddy Waters Related Person. The opinions, information and reports set forth herein are solely attributable to the applicable Muddy Waters Entity and are not attributable to any Muddy Waters Related Person (defined below) (other than the applicable Muddy Waters Entity). Muddy Water's report details its allegations and explains how it found unusual patterns among droves of GSX … GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after-school tutoring service provider in China, today refuted the false allegations in Muddy Waters You should assume that, as of the publication date of a Muddy Waters report, Muddy Waters Related Persons (possibly along with or through its members, partners, affiliates, employees, and/or consultants), Muddy Waters Related Persons clients and/or investors and/or their clients and/or investors have a position (long or short) in one or more of the securities of a Covered Issuer (and/or options, swaps, and other derivatives related to one or more of these securities), and therefore stand to realize significant gains in the event that the prices of either equity or debt securities of a Covered Issuer decline or appreciate. We conclude that at least ~70% of its users are fake, and we think it’s quite likely that at least ~80% of its users are fake. GSX, the online education firm that Muddy Waters called out in May, soared more than 200 per cent through August before paring some of its gains. The research and reports presented on this website express the opinion of the applicable Muddy Waters Entity only. We conclude that at least ~70% of its users are fake, and we think it’s quite likely that at least ~80% of its users are fake. You further agree that any dispute between you and Muddy Waters Research and its affiliates arising from or related to this report and / or the Muddy Waters Research website or viewing the material hereon shall be governed by the laws of the State of California, without regard to any conflict of law provisions. Muddy Waters Research is affiliated with Muddy Waters Capital. Our conclusions are based on GSX’s own user and attendance data files (i.e., this is not from “scraping” data). In addition, a former GSX manager corroborated our analysis, and explained various details of GSX’s extensive bot operation. The reports are the property of the applicable Muddy Waters Entity that published that report. All expressions of opinion are subject to change without notice, and neither Muddy Waters Research nor Muddy Waters Capital undertakes to update or supplement any reports or any of the information, analysis and opinion contained in them. Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. Read More Latest Reports Joyy Inc. MW is Short Joyy … GSX data by YCharts. So what On May 18, Muddy Waters said it was short GSX Techedu stock because the company was "a near-total fraud." The failure of Muddy Waters Research or Muddy Waters Capital to exercise or enforce any right or provision of these Terms of Use shall not constitute a waiver of this right or provision. Long holders of GSX face the risk that the margin lenders will be forced to aggressively sell the stock, crashing the price. Not financial advice. Carson Block, Muddy Waters Capital CIO and founder, joins 'Power Lunch' to discuss why he's shorting GSX Techedu. GSX Refutes Muddy Waters Research's Allegations BEIJING , May 19, 2020 / PRNewswire / -- GSX Techedu Inc. (NYSE: GSX) ("GSX" or the "Company"), a leading online K-12 large-class after … Muddy Waters peels back the layers, often built up by seemingly respected but sycophantic law firms, auditors, and venal managements. It went through the company's user data and said it's "highly confident" over 70% of users are fake and … Our conclusions are based on GSX’s own user and attendance data files (i.e., this is n… more. Giving investment advice requires knowledge of your financial situation, investment objectives, and risk tolerance, and Muddy Waters Capital has no such knowledge about you. Further, any report on this site contains a very large measure of analysis and opinion. Copyright © 2020 Muddy Waters Research, All Rights Reserved. Muddy Waters: 'We are short $GSX because we conclude that it is a near-total fraud.' Sorry, your blog cannot share posts by email. The king of shorting fraudulent Chinese firms, MW, has joined the chorus of about 4-5 other firms singing the same tune … Reports are based on generally available information, field research, inferences and deductions through the applicable Muddy Waters Entity’s due diligence and analytical process. We are short GSX because we conclude that it is a near-total fraud. Previously, GSX stated that the short report is confused and full of ignorance about its business. We conclude that GSX is a massive loss-making business. Posted with permission. 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