Hot Chinese Data Center Stock GDS Under Siege From Short Seller
GDS Holdings saw its share price drop by more than half in less than one week
• The Chinese data center provider’s shares have been going down for weeks, but accelerated Tuesday, following a short thesis by an activist investment fund
• Blue Orca Capital, a short seller, said it was betting against GDS, accusing the company of misrepresenting its leasing results among other warnings
• GDS is in a 30-day quiet period before its earnings report in mid-August and cannot respond until then
• Issuing a thesis about a company during its quiet period is a common tactic employed by short sellers