Weekly Wrap Up

Short sellers brought the heat this week with five reports spanning three continents. The headliner was Fugazi Research's devastating takedown of Security Matters (SMX), which cratered 71% intraday before stabilizing at a still-punishing 45% weekly decline. Meanwhile, Morpheus Research's thesis on Gerresheimer saw the German packaging giant rally 13% as bulls stepped in despite concerning leverage ratios. Not every thesis lands, but when they do, the results can be spectacular.

This Week's Highlights

• Five new reports targeted companies across the US, UK, Germany, and Israel: Fugazi Research exposed SMX as a zero-revenue pump-and-dump (-45.3%), Wolfpack Research hit SES AI on dying battery partnerships (-2.4%), Morpheus Research targeted overleveraged Gerresheimer (+13.1%), Grizzly Research questioned Ceres Power's partnership hype (-11.0%), and Fuzzy Panda exposed NUAI's serial failure CEO (-6.9%)

• The November Activist Short Selling Report is now live: 15 reports delivered a 73% success rate and 15.1% average impact, with Fugazi Research earning Short King of the Month honors for their 81.6% hit on Davis Commodities

• Industry watch: Carl Icahn's net worth has collapsed from $17.5 billion to $4.8 billion following Hindenburg's 2023 report, Carvana is joining the S&P 500 after being one of the most shorted stocks in history, and short sellers are quietly building positions in Cracker Barrel ahead of what could be the next big campaign

This Week in Activist Short Selling

Fugazi Research Short Report on SMX (Security Matters)

Impact on Stock Price

Security Matters delivered this week's most dramatic market reaction, validating Fugazi Research's allegation that the company represents a classic pump-and-dump scheme. The stock cratered from $331.98 to an intraday low of $96.01, a staggering 71.1% collapse within hours of the report's release. While SMX staged a partial recovery to close at $135.82 on December 8 (still down 59.1% on the day), the week-ending close of $181.71 represents a 45.3% decline from pre-report levels. The violence of the intraday move reflects what happens when a promotional campaign meets quality investigative research.

About Security Matters

Security Matters Public Limited Company (NASDAQ: SMX) is an Ireland-domiciled, Israel-operated company that claims to develop molecular-marking technology for product authentication. Despite these ambitious claims, the company has reported zero revenue in every SEC filing to date. SMX previously listed on the Australian Stock Exchange before gaining US exchange access. The company is chaired by Ophir Sternberg, a Miami-based former IDF commando whose previous SPAC involvements include BurgerFi (delisted September 2024) and MSP Recovery (down 99.9%). Shareholder equity has eroded 88% in just 18 months, falling from $11.4 million to $1.36 million.

Key Points from the Report:

• SMX has reported $0 in revenue across every SEC filing while executing seven reverse stock splits in two years to maintain Nasdaq compliance

• The company funded a $5.52 million paid promotional campaign through IR Agency LLC , which disclosed that third parties "would liquidate at or near the time you receive this communication"

• The stock surged 10,000% from under $5 to $490 in seven days amid 40+ press releases, with accumulated deficit growing to over $105 million by mid-2025

• Chairman Ophir Sternberg's "Lion Heart Capital Group LLC" shares a name with an entity involved in an FBI/SEC-shutdown $200 million Ponzi scheme

• The company operates a "toxic financing playbook" including original-issue-discount notes, VWAP-based conversions guaranteeing dilution, and a $100 million equity line

Wolfpack Research Short Report on SES AI Corporation

Impact on Stock Price

SES AI showed remarkable resilience against Wolfpack Research's "dying battery company" thesis, with the stock recovering almost entirely from its initial decline. From a pre-report close of $2.10, shares dipped to an intraday low of $1.95 (a 7.1% drop) before closing at $2.12, actually up a penny from the previous day. By week's end, SES settled at $2.05, representing a modest 2.4% weekly decline. The muted reaction suggests investors may be pricing in significant execution risk already, or that the AI pivot narrative continues to find believers despite Wolfpack's concerns.

About SES AI Corporation

SES AI Corporation (NYSE: SES) is a Boston-headquartered company that started as a lithium-metal battery developer with partnerships with General Motors, Honda, and Hyundai. Following GM's complete exit and with Honda and Hyundai partnerships expiring at year-end 2025, SES has pivoted aggressively into artificial intelligence applications. The company went public via SPAC merger and now trades with a market capitalization of approximately $560 million. Recent moves include the acquisition of UZ Energy Corp, a battery equipment distributor, in an apparent attempt to add revenue to offset the departing OEM partnerships.

Key Points from the Report:

• Honda and Hyundai partnerships representing 74% of revenue expire at year-end 2025, while remaining performance obligations have collapsed 92% from $90 million to just $7 million

• Former employees describe the AI "Molecular Universe" product as "kind of a toy" with a "huge bottleneck" where promising suggestions "die at the synthesis stage"

• The AISPEX partnership came "completely out of the blue" according to a former employee, who noted "they did nothing to fulfill it" after the announcement

• UZ Energy's related entity has ties to an individual sued for allegedly participating in a $1 billion Ponzi scheme with DC Solar's Jeff Carpoff (now serving 30 years)

• CMO Daniel Li and SVP Dr. Winston Wang were quietly removed from the company website without disclosure, suggesting undisclosed executive exodus

Morpheus Research Short Report on Gerresheimer AG

Impact on Stock Price

The market delivered a resounding rejection of Morpheus Research's bear thesis on Gerresheimer, with the 161-year-old German pharmaceutical packaging company staging a remarkable rally off intraday lows. Shares dipped from €24.80 to an intraday low of €22.60 (down 8.9%) on December 9 before reversing sharply to close at €25.24, actually up 1.8% on the day. The bullish momentum continued throughout the week, with Gerresheimer finishing at €28.04, representing a 13.1% gain from pre-report levels. This represents one of the most dramatic thesis rejections of the year.

About Gerresheimer AG

Gerresheimer AG (XETRA: GXI) is one of Germany's oldest industrial companies, founded in 1864 and operating for 161 years as a pharmaceutical packaging manufacturer. The company operates over 40 facilities across 16 countries producing glass and plastic packaging, drug delivery devices, and specialty containers. Gerresheimer made headlines with its approximately €800 million acquisition of Bormioli Pharma in 2024, a deal that significantly increased its debt load. The stock has declined approximately 80% from its September 2023 highs following profit warnings, CEO departure, and BaFin investigation concerns.

Key Points from the Report:

• Leverage ratio stands at 4.15x Net Debt/EBITDA, near the previous 4.25x covenant threshold, with new terms remaining undisclosed

• The €800 million Bormioli acquisition was negotiated by a CEO with alleged conflicts of interest with the seller and paid "the highest multiple in pharma packaging" at 10x EBITDA

• Bormioli's net losses have accelerated from €7.6 million in 2023 to €51.4 million in 2024, a 576% year-over-year increase for an acquisition positioned as accretive

• The company's capitalized expenditure runs at 17% of sales versus 5.5% for peers, potentially indicating aggressive capitalization practices

• Key growth driver CagriSema dual-chamber syringes face quality issues, delays, and cannibalization risks from single-chamber alternatives and oral pills

Grizzly Research Short Report on Ceres Power Holdings

Impact on Stock Price

Grizzly Research's thesis on UK-listed Ceres Power found a receptive market, with the solid oxide fuel cell licensing company declining steadily from the report's publication through week's end. Shares dropped from 307 pence to an intraday low of 261.6 pence (down 14.8%) on December 11, before closing at 277.9 pence (down 9.5% on the day). The selling pressure continued, with Ceres finishing the week at 273.2 pence, an 11.0% decline from pre-report levels. The market appears to agree with Grizzly's "hammer looking for a nail" characterization.

About Ceres Power Holdings

Ceres Power Holdings plc (LSE: CWR) is a UK-based fuel cell technology company founded in 2001 and headquartered in Horsham. The company operates an asset-light licensing model, developing solid oxide fuel cell (SOFC) and electrolyzer cell (SOEC) technology that it licenses to manufacturing partners worldwide. Ceres has announced partnerships with Bosch, Weichai, Doosan, Shell, and Delta Electronics over its two-decade history. The stock surged over 250% since July 2025 following Doosan's "mass production" announcement, though Grizzly questions whether that enthusiasm is justified.

Key Points from the Report

• Despite announcing partnerships with Bosch, Weichai, Doosan, Shell, and others over the years, these deals have consistently failed to generate material licensing revenue

• Four months after Doosan's "mass production" announcement that drove a 250%+ stock rally, only a single 9MW related-party order exists generating at best $1.35 million in gross margin

• Grizzly characterizes Ceres as a "hammer looking for a nail" with technology searching for commercial application rather than solving proven market needs

• The company's asset-light model means partners bear all commercialization risk while Ceres captures limited upside when products actually ship

• Historical pattern shows announcements evaporate into minuscule earnings, with multiple prior partnerships terminated or failing to progress beyond pilot stages

Fuzzy Panda Research Short Report on New Era Energy & Digital

Impact on Stock Price

New Era Energy & Digital saw a measured decline following Fuzzy Panda's devastating character study of CEO E. Will Gray II, whose previous four public companies declined an average of 98%. Shares dropped from $3.60 to an intraday low of $3.24 (down 10%) on December 12 before recovering slightly to close at $3.35, down 6.9% on the day. The stock held at that level through week's end. The timing is notable: Fuzzy Panda points out that a >$1 million stock promotion campaign was scheduled to end December 13, potentially providing exit liquidity for insiders.

About New Era Energy & Digital

New Era Energy & Digital, Inc. (NASDAQ: NUAI) is a Texas-based company that started as an oil and gas operation before pivoting to an "AI data center" narrative. The company owns approximately 406 natural gas wells in New Mexico's Pecos Slope region, with a median well age of 42 years (typical well lifespan is 20-30 years). CEO E. Will Gray II serves dual roles as both CEO and CFO after the previous CFO departed in April 2025, one of multiple executive and board member departures this year. The company carries a going concern notice in its recent 10-Q filing.

Key Points from the Report

• CEO E. Will Gray II's previous four public companies declined an average of -98%, including bankruptcies, liquidations, and stocks trading at $0.0001

• The company spent 2.5x more on paid stock promotion than on operating its gas wells, funding a >$1 million campaign ending December 13

• Gas wells have a median age of 42 years with a third-party appraisal showing negative NPV and approximately $370 million in required capex to develop

• The CFO and 3 of 4 board members quit as Gray added "AI" to the ticker and began promoting the data center narrative

• Former colleagues describe Gray as a "great bullshitter" who "talks big but doesn't play big" and "doesn't execute"

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