Carson Block’s Muddy Waters Research said via Twitter, “MW is short $YY bc we conclude it is a near-total fraud. We conclude its businesses, users, and cash are a fraction of what it reports. We estimate that ~90% of YY Live revenue is fraudulent, and ~80% of Bigo rev is fraudulent…When $BIDU diligences $YY Live, the massive scale of fraud will be apparent. Is BIDU so desperate to show growth that it will pay ~7% of its market cap for an almost entirely fraudulent business? Is China Inc that rotten?..Bigo’s rot stems from inception & the lie about who founded it. This lie enabled Chmnn Li to defraud at least $156.1 million of real money from $YY shareholders & YY to fraudulently report substantial remeasurement gains.” Shares of JOYY are down 10%, or $9.89, to $90.30 in afternoon trading.