The Bear Cave #320
New Activist Reports, Recent Resignations, and Tweets of the Week
Welcome to The Bear Cave! Our last premium articles were “Even More Problems at Medical Properties Trust (MPT)” and “More Problems at Yelp (YELP)” and our next special investigation for paid readers comes out Thursday, April 16.
New Activist Reports
Morpheus Research published on MakeMyTrip Limited (NASDAQ: MMYT — $3.79 billion), India’s leading online travel company. Morpheus alleged the company “openly defies regulators, scams customers, and pads profits through accounting tricks.” Morpheus’s report was based on “interviews with 103 industry experts including former employees” and specifically alleged MakeMyTrip would engage in the illegal practice of “price parity,” whereby the platform “prohibited hotels from selling rooms at prices lower than the prices on MakeMyTrip.”
GlassHouse Research published on Aviat Networks (NASDAQ: AVNW — $261 million), a wireless transport and access solutions company in the telecom sector. GlassHouse Research alleged the company “is prematurely recognizing revenue, will need to write-off a substantial amount of [accounts receivable] from 3rd world countries, and is funding liquidity by delaying supplier payments.” GlassHouse highlighted the company’s rising days sales outstanding, arbitration with its largest supplier, high CFO turnover, and its auditor change from Deloitte to Grant Thornton.
Recent Resignations
Notable executive departures disclosed in the past week include:
CFO of Terra Innovatum Global (NASDAQ: NKLR — $318 million) “resigned with immediate effect” after a little over one year and also departed the board. The nuclear reactor company is down ~55% since its October 2025 SPAC merger.
CFO of Clover Health (NASDAQ: CLOV — $902 million) stepped down with immediate effect after nearly two years. The health insurance company has had six CFOs in the last five years.
CFO of Sally Beauty Holdings (NYSE: SBH — $1.29 billion) “mutually agreed” to depart “to pursue other opportunities” after five years. The separation agreement includes “(1) a gross payment of $881,250 (representing 15 months’ salary), paid to her at the next regular payroll; (2) continuation of health insurance through a COBRA subsidy program for 15 months; (3) a prorated annual bonus for fiscal year 2026; and (4) 12 months of outplacement services.” The company has had six CFOs over the last ten years.
Principal Accounting Officer of Climb Bio (NASDAQ: CLYM — $313 million) “mutually agreed [to] separate from the company, effective April 30, 2026” after seven months in that role. The clinical-stage biotech company has had six CFOs in the last five years.
Chief Investment Officer of ProCap Financial (NASDAQ: BRR — $164 million) resigned with immediate effect after eight months. In January, Investor Bill H. Miller IV resigned from the board with immediate effect after just seven weeks and in March the firm switched auditors from MaloneBailey to BDO USA. The bitcoin-focused financial services firm is led by Mr. Anthony Pompliano and has fallen ~80% since its December 2025 SPAC merger.
Mr. Mingxing Lin and Mr. Tore Ivar Slettemoen, board members of T1 Energy (NYSE: TE — $1.17 billion), both resigned with immediate effect after less than two years. The company’s Chief Accounting Officer also resigned after one year in February. In January, Culper Research published on the clean battery solutions company.
Data for this section is provided by VerityData from VerityPlatform.com
Concerns About Xanadu (XNDU)
Xanadu (NASDAQ: XNDU), a Toronto-based quantum computing company, went public last month at a ~$3 billion valuation via a merger with the Crane Harbor Acquisition Corp SPAC. The company has ~$3 million in revenue on roughly $60 million in annual losses.
Some former employees have been critical of the company. One anonymous December 2025 Glassdoor review alleged, in part:
“Xanadu management is a group of naive people who got a lot of money in the name of quantum computing but don’t know how to spend it… Everyone working at Xanadu knows that ‘Xanadu is a scam’, but no one talks about that because they are getting paid for doing practically nothing.”
“It is so obvious, and everyone at Xanadu knows, that Xanadu top management is making fools of their investors… They are spending hundreds of millions and the only output is 1-2 Nature papers per year. Many professors in academia can publish a Nature paper with a budget under $50k. I think non-technical investors are getting fooled by Nature publications. I am not sure about other quantum computing companies, but Xanadu definitely is a scam.”
Mr. Pierre-Luc Dallaire-Demers, a quantum physicist who previously worked at Xanadu from November 2017 to August 2018, has been especially critical of Xanadu on X. His tweets alleged that “Xanadu is 10x overvalued,” “runs on greater fool theory since day 1,” and “is the Theranos of quantum computing.”
Last month, Xanadu’s SPAC sponsor paid Outside the Box Capital $200,000 for a six-month stock promotion campaign beginning March 9. Outside the Box Capital specializes in creating “viral conversations” around stocks on platforms like Reddit, YouTube, and Discord.
Caveat emptor.
Tweets of the Week
Until next week,
The Bear Cave