Why DLocal Stock Is Falling Over 40% Wednesday

DLocal Limited DLO shares are trading lower by 40.76% to $12.57 Wednesday afternoon after Muddy Waters announced a short position in the stock.

What Else?

In the report Muddy Waters states that "DLO repeatedly makes contradictory statements about its historical TPVs. We believe that these contradictions exist because DLO is misstating its financials and TPV, and that the web of lies has become too complicated to be repeated consistently."

Additionally Muddy Waters writes that "Management and directors dumped an extraordinary ~$1 billion in shares within the first five months of DLO being public. A spate of recent high-level departures brings to mind the idiom about “rats fleeing a sinking ship.”

See Also: Why Discover Financial Services Stock Is Trading Higher

Traders and investors interested in reading the full report can do so here.

According to data from Benzinga Pro, DLO has a 52-week high of $47.65 and a 52-week low of $10.80.