Thread by @ResearchGrizzly

New report out: grizzlyreports.com/doyu-massive-r… We believe $DOYU has been involved with illegal online gambling on their platform. Our research indicates that not only is $DOYU hosting these illegal activities, but they are actively encouraging their users to gamble on their platform.

Recent policy announcements indicate a more stringent regulatory environment that is cracking down on online gambling, order brushing and faking operating numbers. We believe the full scale of the policy reform will be massive. @breakoutpoint @valuewalk @natbaker @zer0estv @FD

$MOMO, another online streaming platform based
in China, recently presented terrible financial
performance in light of “structural reform”. We believe
this is an indicator of what is to come to $DOYU @WillauerProsky @ActivistInsight @ActivistShorts

$DOYU opted to not give revenues guidance for Q4 for the first time since it went public, likely due to the dim quarter following the crackdown of many DOYU streamers due to illegal online gambling. @contrarianshorts @donutshorts @jimcramer @sprucepointcap @KerrisdaleCap

We identified additional evidence of order brushing and suspected pornography on $DOYU, both of which are subject to more stringent regulatory control in China. @Benzinga @BenzingaMedia @MarketWatch

Recently $HUYA and $DOYU announced their business combination. However, we believe HUYA is not without problems either. Regardless of whether the deal goes through or not, we believe both companies would be trading at much lower valuations. @SIRF_Report @retheauditors

Just today Chinese media reported that $DOYU’s second most prominent streamer has been arrested by the police due to suspected online gambling. The problems seem to be massive on DOYU’s platform @muddywatersre @doumenzi

We believe that even $AMZN stock would have gotten hit if @Twitch second most prominent streamer had been arrested by the police. The market seems to not have fully realized today’s revelations about $DOYU and the implication. @CitronResearch @wallstcynic @HindenburgRes @QCMFunds

We modeled out Q4 guidance based on streamer performance data and project a decrease on both a YoY and QoQ basis. We believe further deterioration is soon to follow, and the impact will be long lasting.

Regulators in the US and abroad need to step up and punish crimes, otherwise you create a perverse incentive environment where it almost feels like a management’s fiduciary duty to commit crimes as long as it pays for shareholders.

This is your friendly reminder that we still believe that $GSX is the prime example of a fraudulent company that has reported totally fabricated financials, but when will they get punished? $GSXQ @GrapefruitGals @TeacherChen88 @fsusmatty @AIMhonesty @JosephWhite1955

@TencentGlobal @Fidelity @HuyaOfficial @Vanguard_Group @UBS @cppinvestments @MillenniumMgt @AcadianAsset @GoldmanSachs @miraeasset @StateStreet @twosigma @morganstanley @JaneStreetGroup @DEShawResearch @citadel @DeutscheBankAG

New article out today exposing $DOYU's most prominent streaming room as "DOYU's biggest gamlbing place". s.cyol.com/articles/2021-…

According to third party data , the live streaming room “Changsha Xiangcun Gansidui” has GMV of 177M RMB. Just yesterday it was reported that $DOYU's second most prominent streamer 339 who has GMV 110M RMB was arrested by the police.

The hashtag #$DOYU streaming room becomes teenager’s gambling place# created by youth.cn on Weibo now has over 3.2 million views and it’s trending. China is taking notice, so should US investors.