Short sellers piled into dLocal $DLO stock on November 16, 2022, after Muddy Waters said they are concerned the stock could turn out to be a fraud.
We are concerned that payment processor dLocal is a fraud, says Muddy Water’s Block
dLocal $DLO stock had trading halted for a volatility trading pause on November 16, 2022, after the stock plunged -26%.
dLocal Comments on Short-Seller Report
On November 16, 2022, dLocal, a technology-first payments platform enabling global enterprise merchants to connect with billions of consumers in emerging markets today commented on a short seller report published by Muddy Waters Capital:
The report contains numerous inaccurate statements, groundless claims and speculation. Short seller reports are often designed to drive the stock price downwards to serve the short seller’s interests to the detriment of the company’s shareholders. We caution shareholders from making investment decisions based on this report. Dlocal will rebut the allegations in the appropriate forum in due course.dLocal
dLocal powers local payments in emerging markets connecting global enterprise merchants with billions of emerging market consumers across APAC, the Middle East, Latin America, and Africa. Through the “One dLocal” concept (one direct API, one platform, and one contract), global companies can accept payments, send pay-outs and settle funds globally without the need to manage separate pay-in and payout processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.
dLocal $DLO Stock Technical Analysis
dLocal $DLO stock is in a technical strong downtrend. Long-term indicators suggest a continuation of the downtrend. The stock collapsed as investors dumped the stock and short-sellers rushed in as evidenced by the plunging money flow. The MACD also went negative.