Short Seller Showdown: The Bear Cave Accuses Hindenburg Of Plagiarism

The Bear Cave’s Edwin Dorsey has publicly accused short seller Hindenburg Research of plagiarism on the heels of both firms targeting video game stock Roblox.

What To Know: Dorsey publishes bearish reports on public companies through The Bear Cave newsletter, which is popular among short sellers. Dorsey says he doesn’t short the companies he publishes on.

On Tuesday, Dorsey published a report titled “Problems at Hindenburg Research,” accusing Hindenburg’s Nate Anderson of not properly acknowledging that the short seller uses information from The Bear Cave for its reports.

Dorsey said Anderson has failed to cite The Bear Cave in its own reports multiple times, most recently in the firm’s coverage of Roblox Corp RBLX.

“At times, Hindenburg used virtually identical reporting, wording, sourcing, and research methods in its Roblox report yet doesn't mention The Bear Cave once in its 16,405-word report,” Dorsey said.

See Also: Roblox Denies Hindenburg’s Accusations Of Inflating Metrics, Failing At Child Safety — Calls Them ‘Misleading’

Dorsey went on to highlight several instances in which Hindenburg published similar research on companies after The Bear Cave. He repeatedly took issue with similar wording, and even highlighted the use of identical company descriptions related to Axos Financial.

Anderson posted a response to Dorsey’s report on X this week, stating that the report “falsely and ridiculously alleged” Hindenburg plagiarized his work. Anderson said he doesn’t read Dorsey’s blog and has never used any of his work for Hindenburg research.

Interestingly enough, Anderson said he spoke with Dorsey on the phone last week before Dorsey published his report alleging plagiarism by Hindenburg.

“He could easily see the evidence for himself in front of him. He acknowledged this when we spoke, but instead, decided to ignore it and shamelessly lob false allegations of plagiarism anyway,” Anderson said.

He shared a screenshot of a deleted tweet from Dorsey last week in which Dorsey confirms the call with Anderson and refers to him as a “good guy” before saying, ” I don’t think there was any bad intent here.”

An X user asked Dorsey why he deleted the tweet. Dorsey said, “I slept on it and then realized there were a lot more issues than originally discussed I also felt like the call was not entirely truthful as I evaluated more information.”

Dorsey responded to Anderson’s X post Tuesday afternoon, further accusing Anderson of improper disclosure and claiming he made false allegations in his post defending Hindenburg’s reporting practices. Still, the response was largely focused on The Bear Cave getting the credit Dorsey believes it deserves.

“We can have different views on the right approach, but that in no way means you can't or shouldn't cite The Bear Cave when appropriate,” Dorsey said.

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Illustration created using artificial intelligence via MidJourney.