It was an exceptionally busy week in the short selling world with activist reports spanning multiple sectors, Trevor Milton's appearance on the Tucker Carlson show reigniting discussions around Hindenburg Research's September 2020 Nikola report, and a host of other news stories dominating financial headlines. Because of the volume of reports and developments, we wanted to create a TL;DR section for those who just want a quick hit on the week's most impactful activist research.

Market reactions ranged from modest declines to surprising gains across this week's activist short targets. The most dramatic impact came from BMF Reports' fraud allegations against Aether Holdings, which triggered a 32% decline by week's end. Interestingly, several targets showed resilience or even gains, including Texas Pacific Land which rose 5% despite Gotham City Research's overvaluation thesis. Notable patterns emerged around related-party transactions and questionable revenue recognition practices, with researchers targeting companies ranging from micro-cap promotions to S&P 500 constituents across fintech fraud allegations, healthcare billing schemes, and energy sector overvaluation claims.

Market Impact Analysis

BMF Reports Report on Aether Holdings 07/18/2025

BMF Reports' comprehensive fraud allegations triggered the week's most severe market reaction, with Aether Holdings plummeting 32% from its pre-report close of $13.26 to $8.97 by week's end. The stock experienced immediate selling pressure on the day of publication, declining to $13.06, before continuing its descent throughout the week as investors absorbed the severity of the alleged IPO lock-up violations and related-party schemes.

Blue Orca Capital Report on Nutex Health Inc. 07/22/2025

Blue Orca's arbitration billing scheme allegations created significant volatility in Nutex Health, with shares falling 15% from the pre-report close of $111.19 to $95.02 by week's end. The stock hit an intraday low of $89.00 on the day of publication before recovering slightly to $100.01. The decline over the past week clearly highlights investor skepticism.

Spruce Point Management Report on Limbach Holdings 07/22/2025

Limbach Holdings shares actually gained 8% by week's end, rising from $123.84 to $133.84 despite Spruce Point's allegations of financial misstatements. The stock briefly declined to $115.10 intraday before recovering to $124.80 by close, indicating investor skepticism about the report's claims or confidence in the company's fundamental business model.

Sunshine Research Report on Flux Power Holdings 07/23/2025

Sunshine Research's delisting deadline warnings contributed to an 11% decline in Flux Power Holdings, with shares falling from $2.06 to $1.83 by week's end. The stock showed minimal immediate reaction, declining only to $1.97 intraday and closing at $2.12 on the report day, before gradually weakening as investors processed the NASDAQ compliance concerns and imminent capital raising needs.

The Captain's Log Report on Groupon 07/24/2025

The Captain's Log allegations about questionable GLP-1 and software licensing strategies resulted in a modest 4% decline for Groupon shares, falling from $34.24 to $32.95 by week's end. The stock dropped to $32.40 intraday before recovering to $33.21 by close. The decline over the weak could signal investors are having some of the same concerns.

Gotham City Research Report on LandBridge Company LLC 07/24/2025

Despite Gotham's serious allegations about related-party transactions and circular revenue schemes, LandBridge shares defied expectations by gaining 7% from $52.79 to $56.42 by week's end. The stock declined to $48.55 intraday before recovering strongly to close at $53.74, indicating either strong fundamental support or skepticism about the valuation methodology.

Gotham City Research Report on Texas Pacific Land Corporation 07/24/2025

Despite Gotham's serious overvaluation allegations, Texas Pacific Land shares defied expectations by gaining 5% from $931.28 to $979.29 by week's end. The stock initially declined to $907.82 intraday before recovering to $969.44 by close and continuing to strengthen throughout the remainder of the week, demonstrating remarkable resilience as investors appeared to dismiss the fundamental disconnect claims highlighted in Gotham's analysis.

BMF Reports Report on Aether Holdings 7/18/2025

Market Impact

BMF Reports' fraud allegations against Aether Holdings created immediate and sustained selling pressure, with shares declining 32% by week's end. The stock fell from $13.26 to $8.97, experiencing its most significant drop since going public in April 2025. Note: while the report came out on 7/23/2025 BMF posted on X on 7/18/2025.

Who is Aether Holdings?

Aether Holdings presents itself as a fintech and media company claiming to operate proprietary machine learning tools and data-driven financial platforms. The company went public in April 2025 with a $200 million market cap but operates from a 235-square-foot virtual office with minimal tangible assets.

Key Points from the Report

• IPO Lock-Up Violations: CEO Nicolas Lin allegedly sold 428,572 shares through shell company 28 Ventures immediately after IPO while supposedly restricted from trading

• FINRA-Barred Partner: Head of Business Development Frank Cid was permanently barred by FINRA in 2022 for refusing to cooperate with investigations

• Phantom Operations: Despite claiming to be a $200M AI empire, ATHR operates from a virtual office with only $2,268 in property, plant & equipment

• Sham Acquisitions: July 2025 acquisition of AltcoinInvesting.co revealed a website with only 169 visitors in June 2025

• Regulatory Red Flags: Company selected ZH CPA as auditor, a firm with 100% failure rate in PCAOB inspections

  Read our full summary here

Blue Orca Capital Report on Nutex Health Inc. 7/22/2025

Market Impact

Blue Orca's allegations about fraudulent arbitration billing schemes drove Nutex Health shares down 15% by week's end. The stock declined from $111.19 to $95.02, with significant intraday volatility as investors assessed the sustainability of the company's HaloMD-driven revenue model.

Who is Nutex Health Inc.?

Nutex Health operates a network of micro-hospitals across the U.S., providing emergency and specialty healthcare services. After struggling financially due to the No Surprises Act implementation, the company partnered with HaloMD to exploit arbitration loopholes, triggering dramatic financial recovery and a >20x stock rally.

Key Points from the Report

• HaloMD Exploitation: Company achieved reimbursement rates up to 8x median in-network rates through controversial arbitration claims submitted by a vendor run by a former Las Vegas stripper

• Legal Storm Brewing: Three recent lawsuits by Blue Cross affiliates accuse HaloMD of racketeering and fraud for flooding arbitration systems with ineligible claims

• Revenue at Risk: Accounts receivable ballooned from $66.3M to $299.3M in two quarters, much potentially uncollectible following Fifth Circuit ruling that arbitration awards aren't federally enforceable

• CEO Red Flags: Dr. Thomas Vo previously founded Neighbors Emergency Center, which went bankrupt amid surprise billing criticism

• Audit Concerns: Former auditor Marcum LLP flagged revenue recognition practices as critical audit matter

  Read our full summary here

Spruce Point Management Report on Limbach Holdings 7/22/2025

Market Impact

Contrary to typical short report reactions, Limbach Holdings shares gained 8% by week's end despite Spruce Point's serious allegations. The stock rose from $123.84 to $133.84, suggesting investor confidence in the company's fundamental business model or skepticism about the research firm's claims.

Who is Limbach Holdings?

Limbach Holdings is a specialty contractor providing mechanical construction and maintenance services for institutional and commercial buildings. The company operates through General Contractor Relationships (GCR) and Owner Direct Relationships (ODR) segments, emphasizing the higher-margin recurring revenue from ODR business.

Key Points from the Report

• Overstated ODR Growth: Spruce Point estimates ODR revenue growth is overstated by 25-50% and segment margins inflated by at least 20%

• Executive Background Issues: CEO Michael McCann allegedly left prior CFO role amid fraud allegations at IES Holdings; CFO served at Herbalife during FTC scrutiny period

• Non-Standard Metrics: Company uses "ODR adjusted EBITDA" excluding significant corporate costs, artificially inflating profitability measurements

• Valuation Concerns: Recent analyst price targets imply 19x EV/EBITDA multiple, well above mechanical contracting peers

• Revenue Mix Discrepancy: True ODR percentage closer to 25% rather than management's claimed 55%

  Read our full summary here

Sunshine Research Report on Flux Power Holdings 7/23/2025

Market Impact

Sunshine Research's delisting deadline warnings contributed to an 11% decline in Flux Power Holdings by week's end. Shares fell from $2.06 to $1.83 as investors processed the company's immediate NASDAQ compliance crisis and potential massive dilution requirements.

Who is Flux Power Holdings, Inc.?

Flux Power Holdings manufactures lithium-ion battery systems for industrial markets, primarily forklifts and airport ground support equipment. The company operates a narrow business model, sourcing battery cells from a single Chinese supplier and assembling them into battery packs for OEM customers.

Key Points from the Report

• Imminent Delisting Risk: NASDAQ compliance extension expires 07/30/2025, requiring immediate action to avoid delisting or face 30-60% shareholder dilution

• Capital Raising Shortfall: Preliminary $2.9M preferred equity agreement falls short of estimated $6.8-22.3M needed for compliance

• Liquidity Crisis: Company ended Q1 2025 with only $505,000 cash and deteriorating working capital from $17M to below $5M

• Tariff Vulnerability: 50-70% of COGS subject to tariffs from single Chinese supplier; high tariff scenarios would require 29% price increases or 103% gross profit decline

• Valuation Disconnect: $35M market cap despite negative $4.4M book value and only $8M net invested capital

  Read our full summary here

The Captain's Log Report on Groupon 7/24/2025

Market Impact

The Captain's Log allegations about questionable revenue strategies resulted in a modest 4% decline for Groupon shares by week's end. The stock fell from $34.24 to $32.95, suggesting the market had already anticipated some revenue quality concerns under the new Czech ownership.

Who is Groupon?

Groupon is an online marketplace originally focused on local experience discounts that was taken over by Czech private equity firm Pale Fire Capital in 2023. Under new leadership, the company has pivoted toward higher-margin affiliate offers, particularly GLP-1 treatments and discounted Microsoft Office software.

Key Points from the Report

• GLP-1 Scheme Concerns: Platform hosted hundreds of med spa affiliates selling compounded weight-loss treatments during shortages, many with inaccuracies and lacking proper medical oversight

• Microsoft Office Miscategorization: Heavily marketed discounted Office licenses through third-party vendors were incorrectly classified under "North America Local" segment rather than digital goods

• Revenue Engineering: Apparent reclassification of affiliate revenue from "Goods" to "Local" segments artificially inflated core business performance metrics

• Regulatory Withdrawal: Many GLP-1 providers quietly withdrew from platform in mid-2025 as scrutiny increased

• Management Opacity: Leadership provides only vague references to improvements without transparency about revenue source changes

  Read our full summary here

Gotham City Research Report on LandBridge Company LLC 7/24/2025

Market Impact

Despite serious allegations about related-party transactions and revenue manipulation, LandBridge shares gained 7% by week's end, rising from $52.79 to $56.42. The resilient performance suggests either strong fundamental support or investor skepticism about Gotham's valuation methodology.

Who is LandBridge LLC?

LandBridge Company LLC is an energy development company that went public in 06/2024, operating as a surface owner in the Permian Basin. The company generates revenue through surface use royalties, water management services, and potential data center development opportunities, with shares surging 211% since its IPO.

Key Points from the Report

• Circular Money Flow: Insiders allegedly extracted over $600M since IPO while contributing only $35.4M, with systematic stock sales totaling $463.9M through Q1 2025

• Inflated Revenue Recognition: Company reports $0.10-$0.25 per barrel water royalty rates versus peer TPL's $0.08-$0.10 rate; 32% of 2024 revenues from related parties despite management claiming only 17%

• Questionable Data Center Deals: $8M deposit immediately recognized as revenue despite no construction; alleged developer incorporated same day deal announced with barely functional website

• Technical Challenges: New 765kV transmission lines and closed-loop cooling technology eliminate key advantages for Permian data centers

• Governance Red Flags: CFO resigned post-IPO without explanation; Five Point owns 67.1% of shares, rendering minority voting rights meaningless

  Read our full summary here

Gotham City Research Report on Texas Pacific Land Corporation 7/24/2025

Market Impact

Despite Gotham City Research's serious overvaluation allegations, Texas Pacific Land shares defied expectations by gaining 5% from $931.28 to $979.29 by week's end. The stock initially declined to $907.82 intraday before recovering to $969.44 by close and continuing to strengthen throughout the remainder of the week, demonstrating remarkable resilience as investors appeared to dismiss the fundamental disconnect claims highlighted in Gotham's analysis.

Who is Texas Pacific Land Corporation?

Texas Pacific Land Corporation owns approximately 873,136 surface acres in the Permian Basin, generating revenue through oil and gas royalties, water sales, and land transactions. Originally a liquidating trust from the 1880s, TPL converted to a Delaware corporation in 2021, enabling S&P 500 inclusion in November 2024 and becoming one of the best-performing stocks over two decades.

Key Points from the Report

• Fundamental Disconnect: Stock price increased 4.2x from 2019-2024 while EPS grew only 1.4x, creating massive valuation gap coinciding with corporate conversion and index inclusion

• Artificial Index Buying: Passive fund ownership surged from <1% in 2020 to >24% by 2024, with forced S&P 500 inclusion driving price-insensitive buying

• Horizon Kinetics Deception: Largest active shareholder has been massive seller, reducing position 34% since 2018 despite market perception of buying based on Form 4 filings

• Business Deterioration: Revenue growth decelerated to 3% annually 2022-2024; EBIT margins declined from 81.5% to 77% since 2019

• Promotional Activities: S&P 500 company engaging in targeted stock advertisements and social media promotion typically associated with penny stock campaigns

  Read our full summary here

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