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A bombshell report from famed activist short-selling firm Hindenburg Research caused Roblox’s stock to plummet by as much as 9% in intraday trading after it accused the company of overinflating its user metrics and fostering an unsafe environment for underage users.

Lennon72 wrote: ↑Fri Oct 18, 2024 2:36 am So what exactly do they mean by "unsafe environment".

Another claim by the short-seller was that underage users are being broadly targeted in what amounts to “a pedophile hellscape for kids.” The authors allege the website’s social media features “allow pedophiles to efficiently target hundreds of children, with no upfront screening to prevent them from joining the platform.”

The authors found 38 groups on the platform where users traded child pornography and solicited sexual favors, according to the report. Several other inappropriate games and experiences tied to convicted sex trafficker Jeffrey Epstein and accused sex trafficker Sean “Diddy” Combs were also available to the authors, even when they created an account listing their age as under 13.