The research firm, which has taken a short position in Roblox's stock, released a report arguing the company does not do enough to keep children safe.

It argues that Roblox is inflating its Daily Active User (DAU) metrics through bots and fraudulent accounts, making its user engagement seem stronger than it actually is.

A research firm shorts Roblox because the game company is allegedly misleading investors, lying about user numbers, and facilitating illicit behavior with minors. Roblox denies the accusations.

In its latest short-selling report, Hindenburg claims Roblox is dishonest about its daily active user count and has different internal numbers than the ones it provides to public investors.

Hindenburg’s report accuses Roblox of inflating DAU figures by equating DAUs with unique “people,” despite acknowledging in SEC filings that DAUs may include multiple accounts or bots.