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Muddy Waters targets DLocal, shares tank, company responds

Michael Flaherty
Nov 17, 2022

Carson Block, speaking at a Sohn Conference. Getty Images.

Muddy Waters has placed a short bet against payment processing company DLocal. Muddy Waters CEO Carson Block announced the move at a conference in London, and the company published a research report.

Why it matters: DLocal — based in Montevideo, Uruguay — now finds itself vulnerable, as its stock plunged by more than 50% at one point.

Details: "Block told attendees at the Sohn Conference that he entered his short position because of the many 'red flags' he found in the most recent accounts which were filed in 2020 by Dlocal Ltd, an Uruguay-based company, which says connects global merchants with emerging market users," Reuters reported.

What they're saying: The company rejected Block's position in a press release.

  • "The report contains numerous inaccurate statements, groundless claims and speculation," DLocal said.
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