Muddy Waters states in newly published report on its site that it is short GSX Techedu “because we conclude that it is a near-total fraud.” 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 stated in its report, joining fellow short-seller Citron Research, which has been calling fraud at GSX for some time. Muddy Waters added: “Our conclusions are based on GSX’s own user and attendance data files (i.e., this is not from “scraping” data). We downloaded GSX’s data from more than 200 paid K-12 classes covering 54,065 unique users.”