Short-selling research firm Grizzly Research issued a short report on DouYu (DOYU), citing its belief that the company “has been involved with illegal online gambling on their platform.” “Not only” is DouYu “hosting these illegal activities, but they are actively encouraging their users to gamble on their platform to boost revenue,” contends Grizzly, which added that “just today Chinese media reported that DOYU’s second most prominent streamer has been arrested by the police due to suspected online gambling.” The firm also calls out Momo’s (MOMO) “recently presented terrible financial performance in light of ‘structural reform'” as an “indicator of what is to come” for DouYu.