Morpheus Research hints at India report; markets recall past short-seller episodes

Morpheus Research, a recently formed activist short-selling firm, on Monday hinted at an upcoming India-focused report, posting on X: “India — something new coming soon.”

The teaser did not name any company or sector, but drew attention in market circles given the track record of similar firms whose reports have triggered sharp moves in stocks globally.

Teaser, not a trigger

Morpheus Research is a new entrant in the activist short-selling space and has been linked to analysts previously associated with Hindenburg Research. Its reports typically involve forensic accounting analysis and governance-focused critiques, often accompanied by disclosed or implied short positions.

There was no immediate reaction across benchmark indices on Monday. Market participants said any meaningful impact would depend on the substance of the eventual report rather than the teaser itself.

Adani episode remains key reference point

The post has revived memories of earlier short-seller interventions in India, particularly Hindenburg’s January 2023 report on the Adani Group, which alleged accounting irregularities and stock manipulation.

The report triggered a sharp selloff, wiping out over $150 billion in market value across group companies at its peak.

Since then, the recovery has been uneven. While flagship entities such as Adani Enterprises and Adani Ports have rebounded to or above pre-report levels, several group stocks have lagged their earlier highs.

Regulatory outcome and later developments

In September 2025, the Securities and Exchange Board of India (Sebi) dismissed key allegations of fund diversion and related-party violations, effectively clearing the group on the most serious charges.

Separately, in August 2024, Hindenburg raised governance-related allegations involving Sebi chairperson Madhabi Puri Buch. These were denied, and regulators said no actionable wrongdoing was established.

Analysts cautioned against drawing conclusions based on teaser posts.

“Such signals are typically used to build anticipation ahead of a detailed report. The actual market reaction depends on the evidence and the company’s response,” a market participant said.

Hindenburg Research shut down on January 15, 2025, with founder Nate Anderson citing the “intense and all-encompassing” nature of the work, and describing the decision as a personal one rather than the result of any single event.