Monthly Report7 min read

June 2025 Activist Short Selling Report

June 2025 Activist Short Selling Performance Support Executive Summary 11 Total Reports -18.1% Average Impact 63.6% Success Rate June 2025 delivered a tale of two exchanges. While NASDAQ-listed…

Activ8 Newsroom • December 8, 2025

June 2025

Activist Short Selling Performance Support

Executive Summary

Total Reports

-18.1%

Average Impact

63.6%

Success Rate

June 2025 delivered a tale of two exchanges. While NASDAQ-listed targets crumbled under activist scrutiny-averaging a brutal -36.1% decline-NYSE names proved remarkably resilient, posting a collective +3.4% gain. The month's most explosive calls came from newcomers Fugazi Research and the ever-sharp BMF Reports, whose targets collapsed over 75% within days of publication. Meanwhile, large-cap names like Tenet Healthcare demonstrated that even the most damning fraud allegations can struggle to move the needle when institutional conviction runs deep.

🏆 Top Performers: The June Bloodbath

Biggest Declines Since Report PublicationSBET
-77.9%
Fugazi Research
INMB
-75.2%
BMF Reports
ABL
-31.7%
Morpheus Research
NWTN
-18.4%
Red Flag Research
DATS
-7.3%
Red Flag Research

The Fugazi Factor: Fugazi Research's debut on SharpLink Gaming (SBET) was nothing short of devastating. The report methodically dismantled the company's reverse merger origins, questionable FourCubed acquisition, and the alleged sham sale to RSports Interactive-all while SBET couldn't even file its financials on time. A near-78% collapse in under a month validates the thesis that some shells are better left unturned.

The Placebo Effect: BMF Reports continued its hot streak with INmune Bio, exposing what it called "The Placebo Hustle"-an abandoned drug repurposed for Alzheimer's with cherry-picked trial data. With 49% short interest already in place, the market needed little convincing. The stock cratered 75% in just three trading sessions.

📈 Market Breakdown

Exchange Analysis

NASDAQ

6 reports (54.5% of total)

Avg. Impact: -36.1%

Small-cap carnage: NASDAQ targets included the month's biggest losers-SBET, INMB, and ABL-where thin floats amplified downside moves.

NYSE

5 reports (45.5% of total)

Avg. Impact: +3.4%

The defensive fortress: Large-cap NYSE names shrugged off activist attacks, with THC and DHI posting gains despite serious allegations.

Geographic Distribution

🇺🇸

United States

9 reports | -20.2% avg

🇦🇪

United Arab Emirates

2 reports | -8.8% avg

The UAE Angle: Two Dubai-headquartered companies-NWTN and Yalla Group-found themselves in activist crosshairs this month. While NWTN dropped 18% on allegations of hidden China-linked ownership, Yalla's stock proved surprisingly resilient despite Pelican Way's detailed fraud allegations. Geographic arbitrage or investor apathy? Time will tell.

💰 Market Cap Distribution

Micro-Cap (<$300M)

2 reports

Avg. Impact: -41.2%

Targets: INMB ($51M), DATS ($13M)

Small-Cap ($300M-$2B)

6 reports

Avg. Impact: -22.2%

Targets: SBET, ABL, MVST, CTO, NWTN, YALA

Large-Cap (>$10B)

3 reports

Avg. Impact: +5.5%

Targets: DHI ($46B), LEN ($32B), THC ($18B)

Key Insight

The size effect was pronounced in June. Micro and small-cap targets averaged -27% combined, while large-caps actually gained ground. Institutional ownership and deeper liquidity continue to provide a buffer against activist campaigns on bigger names.

🏭 Industry Analysis

Industry	Reports	Avg. Impact	Notable Targets
Gambling	1	-77.9%	SBET (SharpLink Gaming)
Biotech	1	-75.2%	INMB (INmune Bio)
Insurance	1	-31.7%	ABL (Abacus Global)
Auto	1	-18.4%	NWTN (NWTN Inc)
Electrical Equipment	1	-6.0%	MVST (Microvast)
Software	2	-3.3%	DATS, YALA
REIT	1	-0.2%	CTO (CTO Realty)
Construction	2	+0.8%	DHI, LEN
Healthcare	1	+14.9%	THC (Tenet Healthcare)

Sector Spotlight: Gambling and biotech emerged as the most vulnerable sectors, with targets in both spaces collapsing over 75%. Meanwhile, healthcare proved surprisingly resistant-Tenet Healthcare actually rallied 15% despite Fuzzy Panda's detailed Medicare fraud allegations. The homebuilder duo of D.R. Horton and Lennar similarly weathered Hunterbrook's investigative report with minimal damage, suggesting institutional investors may have already priced in quality concerns.

🎯 Research Firm Rankings

June 2025 Performance by Firm#1
Fugazi Research
1 Report | SBET
-77.9%
#2
BMF Reports
1 Report | INMB
-75.2%
#3
Morpheus Research
1 Report | ABL
-31.7%
#4
Red Flag Research Co.
2 Reports | NWTN, DATS
-12.8%
#5
Grizzly Research
1 Report | MVST
-6.0%
#6
WolfPack Research
1 Report | CTO
-0.2%
#7
Pelican Way Research
1 Report | YALA
+0.7%
#8
Hunterbrook Media
2 Reports | DHI, LEN
+0.8%
#9
Fuzzy Panda Research
1 Report | THC
+14.9%

The Newcomer Effect: Fugazi Research's explosive debut raises an interesting question: does market surprise amplify impact? With no track record to price in, SBET shareholders may have been caught flatfooted by the depth of Fugazi's research. BMF Reports, by contrast, carries institutional credibility that may have accelerated INmune's collapse as funds moved quickly to derisk.

The Large-Cap Conundrum: Both Hunterbrook Media and Fuzzy Panda produced thoroughly researched, damning reports on large-cap targets-yet both saw their targets rise post-publication. Hunterbrook's investigation into D.R. Horton and Lennar's construction practices featured 60+ homeowner interviews across 16 states; Fuzzy Panda's Tenet Healthcare piece alleged $845M in potential fraud exposure. Yet institutional flows and market dynamics overwhelmed the bear case. A reminder that being right on the thesis doesn't guarantee being right on the trade.

📰 Notable Campaigns

Fugazi Research vs. SharpLink Gaming

NASDAQ: SBET | Gambling/Gaming

-77.9%

Reverse Merger Shell Company

Fugazi alleged SBET was formed via reverse merger with a failed Israeli telecom, with the subsequent FourCubed acquisition ($8.2M for $358K operating income) and "sham" RSports sale designed to enrich insiders. The company's failure to file financials sealed its fate.

BMF Reports vs. INmune Bio

NASDAQ: INMB | Biotech

-75.2%

Failed Trial Cash Burn

"The Placebo Hustle" exposed XPro as an abandoned drug now repurposed for Alzheimer's. Phase 2 failed primary endpoints; only a cherry-picked subgroup showed modest results. With $20.9M cash and 49% short interest, the collapse was swift and brutal.

Morpheus Research vs. Abacus Global

NASDAQ: ABL | Life Insurance

-31.7%

Accounting Related Party

Morpheus alleged ABL manufactures fake revenue by systematically underestimating when people will die through relationship with Lapetus Solutions. The follow-up report revealed policy "round-tripping" between related parties and undisclosed NIB acquisition.

Fuzzy Panda vs. Tenet Healthcare

NYSE: THC | Healthcare

+14.9%

Medicare Fraud Resilient

Alleged $845M fraud exposure through outlier payments, inflated costs, and "million-dollar babies" Medicaid scheme. Despite $2.5B in historical fraud fines, the $18B market cap and institutional base proved unshakeable. The stock rallied 15%.

💡 Strategic Insights

1The NASDAQ/NYSE Divergence Persists
                June's -36% vs +3.4% split between NASDAQ and NYSE targets reinforces a structural pattern: smaller exchanges with thinner liquidity remain far more vulnerable to activist campaigns. Traders should weight exchange listing heavily when assessing short thesis viability.
            
2Newcomers Can Pack Outsized Punch
                Fugazi Research's 78% hit on its debut suggests markets may underestimate unknown activists. Without a track record to discount, surprise factor can amplify impact. Watch emerging research shops for asymmetric opportunities.
            
3Large-Cap Immunity Remains Real
                Three reports targeting $10B+ companies produced +5.5% average returns. Institutional ownership, analyst coverage, and deeper liquidity continue to insulate mega-caps from activist pressure. Even damning investigations struggle to move the needle.
            
4Life Settlements Under Spotlight
                Morpheus Research's Abacus campaign echoes historical patterns from GWG Holdings and Life Partners failures. The life settlements space-with its inherent valuation opacity and mortality estimation challenges-remains fertile ground for activist scrutiny.
            
5UAE-Linked Companies Drawing Fire
                Two Dubai-headquartered targets this month signal growing activist interest in emerging market structures with U.S. listings. Allegations of hidden Chinese ownership (NWTN) and revenue fabrication (YALA) highlight the due diligence challenges these structures present.
            

📉 Reports That Struggled

Targets That Defied the BearsTHC
+14.9%
Fuzzy Panda Research
DHI
+1.1%
Hunterbrook Media
YALA
+0.7%
Pelican Way Research
LEN
+0.5%
Hunterbrook Media

The Institutional Shield: All four of these targets share a common thread: substantial institutional ownership and analyst coverage. Tenet Healthcare's 15% rally despite detailed fraud allegations demonstrates that large-cap names can absorb even the most damning research when conviction runs deep. Pelican Way's Yalla thesis-alleging a $283M revenue gap-may prove accurate over time, but short-term price action suggests the market needs more than allegations to move.

🎯 Final Thoughts

Bottom Line: June 2025 demonstrated the continued bifurcation in activist short selling effectiveness. Small-cap NASDAQ names with questionable fundamentals remain highly vulnerable-as evidenced by 75%+ collapses in SBET and INMB-while large-cap NYSE targets proved nearly impervious to even the most detailed investigations.

The month's standout performers shared common characteristics: thin floats, minimal institutional ownership, and fundamental business model questions that extended beyond mere accounting concerns. Fugazi Research's devastating debut and BMF Reports' continued excellence suggest that research quality matters-but target selection may matter even more.

Looking ahead, the life settlements space, UAE-linked listings, and micro-cap biotech remain fertile hunting grounds for activist researchers. Meanwhile, attempts to short large-cap names-regardless of thesis quality-continue to face structural headwinds that make profitable execution challenging. The smart money will calibrate position sizing and target selection accordingly.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Past performance of activist short reports does not guarantee future results. All data reflects price changes from report publication date through June 30, 2025. Always conduct your own due diligence before making investment decisions.

Activ8 Insights | June 2025 Monthly Report