Our Mission, Your Edge

It’s Day One of our newsletter—and we’re glad you’re here. At Activ8Finance, we’re building more than just a weekly digest. We’re creating a home for the activist short selling community: a place where rigorous research, credible voices, and sharp insights come together.

Our mission is to expose fraud, challenge hype, and bring transparency to the markets. But we can’t do it alone. If you believe in the value of truth, scrutiny, and accountability—share this newsletter. Let’s grow the conversation and push for a more transparent market, together. This is just the start.

EVs
Red Flag Research on NWTN, Inc. (NASDAQ: NWTN)

Report Date: Wednesday 06/16/2025

• Close Price Day Before Report: $1.97

• Low on Report Date: $1.88

• Close Price Day of Report: $1.89

• Close Price End of Week: $2.10
  

   Thesis: Red Flag Research alleges NWTN is a promotion-fueled EV mirage—lacking transparency, overstating its valuation, and obscuring real ownership ties to controversial Chinese backers through Middle Eastern proxies.

  
  Key red flags:

  • Dubious ownership structure involving shell entities and links to shadowy Chinese financial players

  • Multi-billion-dollar valuation despite no clear revenue model or operational scale

  • SPAC listing used as a veil to mask insider enrichment and avoid traditional scrutiny

  
  Impact:
  Shares dropped to $1.88 on the day of the report, reflecting some investor unease with the allegations around NWTN’s ownership structure and valuation. However, the stock quickly stabilized, suggesting the market may be discounting the likelihood of immediate regulatory action or perceiving the risks as already priced in.
  
  Read Activ8 Finance’s Analysis

Technology
Red Flag Research on DatChat, Inc. (NASDAQ: DATS)

Report Date: Monday 06/18/2025

• Close Price Day Before Report: $2.77

• Low on Report Date: $2.66

• Close Price Day of Report: $2.82

• Close Price End of Week: $2.67
  
  Thesis: Red Flag Research accuses DatChat of being a stealthy stock promotion vehicle—more focused on capitalizing via dilutive financings and media hype than delivering on any real technological innovation.

  
  Key red flags:

  • Questionable underwriter alignment with EF Hutton, a firm with a track record of microcap deals tied to volatile price swings

  • Suspect promotional cycles timed with capital raises and vague product announcements

  • Governance concerns, including insider enrichment and lack of meaningful user traction for its core app

  
  Impact:
  Shares dropped to a low of $2.66 on the day of the report, signaling a sharp reaction from investors concerned about DatChat’s promotional practices and questionable financing ties. The pronounced dip suggests heightened sensitivity in the microcap space to patterns of dilution and hype-driven cycles, especially when underwriters like EF Hutton are involved.
  
  Read Activ8 Finance’s Analysis

This Week in the News

China Hustle 2.0: U.S. Investors Still Falling for the Same Playbook
Despite the cautionary tale of the 2018 documentary The China Hustle, a new wave of Chinese small-cap scams is burning American investors all over again. These schemes follow a familiar formula: little-known Chinese companies quietly list on U.S. exchanges, generate hype through paid stock promotions, and then implode—leaving retail traders holding the bag.

The piece breaks down how entities like Jayud Global Logistics, Bitdeer Technologies Group, and Lixiang Education mimic past frauds, including exaggerated revenue claims and undisclosed insider dealings. Regulatory oversight remains thin, particularly in spotting front-run promotion campaigns and sham financials.

As the fraud machinery gets more sophisticated—and retail access to penny stocks easier—the cycle of hype and collapse is accelerating.

Read the full article at Activ8Finance.com