"The downfall of Luckin was triggered by short seller Carson Block of Muddy Waters that published detailed allegations on January 31, 2020, of massive fraud at the company, perpetrated at the highest levels.
By the time the Muddy Waters report came out, the company’s stock – well, American Depositary Receipt (ADR) – had skyrocketed from the IPO price of $17 a share in May 2019, to $50 a share in January 2020, giving the company a market capitalization (share price times shares outstanding) of $12.6 billion.
The short-seller’s report caused the shares to zigzag lower. On April 2, 2020, the company finally admitted that it had fabricated $310 million (RMB 2.2 billion) in revenues for 2019, nearly doubling its actual revenues.....
Over the next few days, shares dropped further. Then trading was halted. Eventually, the Nasdaq delisted the ADR...."
wolfstreet.com/2021/02/05/...or-bankruptcy-in-new-york-today/