A short seller report claims Roblox intentionally includes bots and alt accounts in its user numbers and fails to adequately protect children.

Hindenburg Research disclosed a short position in Roblox on Tuesday, alleging that the gaming platform popular among young children inflated metrics including user numbers and engagement. Roblox shares fell as much as 9% after the short seller said the company conflated daily active users (DAUs) with the number of people visiting its platform.

The research firm alleges that the videogame company has exaggerated user data and compromises child safety.

Hindenburg Research on Tuesday disclosed a short position in Roblox, saying the videogame company has been lying to investors and regulators about the number of users on its platform.

Hindenburg Research has taken a short position in online gaming platform Roblox Corporation, accusing the company of lying to investors and regulators about the number of 'people' on its platform, sending the shares sharply lower in pre-market trade on October 8.

Roblox shares fell 9.2% in early trading after the short seller said the company conflated daily active users (DAUs) with the number of people visiting its platform

Hindenburg alleges that Roblox has been exaggerating daily user and engagement figures to investors since it went public in 2021. The firm also accuses Roblox of giving priority t

Key Takeaways Roblox is accused by short seller Hindenburg Research of lying about its user data. The news sent its shares lower on Tuesday. The researchers claim Roblox inflates the number of users and the time they are playing games on the site.