You understand and agree that Muddy Waters Capital does not have any investment advisory relationship with you or does not owe fiduciary duties to you. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pocket (Opens in new window), Click to share on Telegram (Opens in new window). Making GSX’s denials even more farcical is that it openly recruits engineers to help it run bot farms, which we show in this report. If you have obtained research published by Muddy Waters Research or Muddy Waters Capital in any manner other than by download from that link, you may not read such research without going to that link and agreeing to the Terms of Use. “GSX, after we reported it, tripled,” Block said in an interview with Bloomberg Television. Neither Muddy Waters Research nor any Muddy Waters Related Person (including Muddy Waters Capital) are offering, selling or buying any security to or from any person through this website or reports on this website. We maintain our view that GSX is a massive fraud – i.e., it is a nearly empty box. With tail revenue adjustments, EHTH’s collection period seemingly extends to 20 years. Muddy Waters Research is affiliated with Muddy Waters Capital. 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. GSX data by YCharts. Muddy Waters Research is an online research publication that produces due diligence-based reports on publicly traded securities, and Muddy Waters Capital LLC is an investment adviser registered with the U.S. Securities and Exchange Commission. Under no circumstances should any of these reports or any information herein be construed as investment advice, or as an offer to sell or the solicitation of an offer to buy any securities or other financial instruments. You further agree that you will not communicate the contents of reports and other materials on this site to any other person unless that person has agreed to be bound by these Terms of Use. So what. Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. GSX: Small Classes, Big Lies (GSX US) GSX Techedu Inc. 2020-05-28: MW is Short GSX Techedu Inc. (GSX US) GSX Techedu Inc. 2020-05-18: Burford: Husbanding Liquidity, Wife-ing Financials (BUR LN) Burford Capital Ltd. 2020-05-11: MW is Short eHealth Inc. (EHTH US) eHealth Inc. 2020-04-08 Block on CNBC’s Squawk Box discussing MW's latest short, eHealth Inc. The reports are the property of the applicable Muddy Waters Entity that published that report. EHTH’s future cash flows are therefore highly speculative.… more, 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 percentage of fake users is over 80%. Read More . Muddy Waters is short GSX Techedu. 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. Muddy Waters Research, Muddy Waters Capital and/or the Muddy Waters Related Persons intend to continue transacting in the securities of Covered Issuers for an indefinite period after an initial report on a Covered Person, and such person may be long, short, or neutral at any time hereafter regardless of their initial position and views as stated in the research report published by Muddy Waters Research or Muddy Waters Capital. Copyright © 2020 Muddy Waters Research, All Rights Reserved. If you access this website, download or receive the contents of reports or other materials on this website as an agent for any other person, you are binding your principal to these same Terms of Use. The Company respects Muddy Waters' efforts. You agree that each Muddy Waters Related Person is a third-party beneficiary to these Terms of Use. Before Muddy Waters, peers like Citron Research, Scorpio VC and Grizzly Research had taken aim at GSX in five separate reports since February, alleging the online tutoring firm cooked its book. You (or any person you are acting as agent for) agree to hold harmless Muddy Waters Research, Muddy Waters Capital and its affiliates and related parties, including, but not limited to any principals, officers, directors, employees, members, clients, investors, consultants and agents (collectively, the “Muddy Waters Related Persons”) for any direct or indirect losses (including trading losses) attributable to any information on this website or in a research report. GSX Refutes Muddy Waters Research's Follow Up Report News provided by. And yet, nothing could prepare us for the surreality of Baidu announcing its intention to buy YY Live from JOYY, which happened just as we were preparing to reveal that our year-lon… more, In the great present-day money grab known as SPAC promotion, egregious mistakes will be made – such as missing an impending customer defection that could cost ~35% of revenue within two years. 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