Hindenburg Report Sparks Controversy and Losses for Jack Dorsey and Cash App

Cathie Wood, founder of Ark Invest, criticized Hindenburg's short report on Block Inc. as "wildly misleading" and accused the short seller of underestimating the intelligence of investors and analysts. Ark Invest has been buying up Block shares since the release of the report, holding the stock in three of its ETFs. The short report claimed that Cash App was the only electronic P2P payment processor mentioned in a COVID-19 fraud indictment, but failed to mention that the defrauded funds had come via Bank of America.