Hindenburg Research disclosed a short position against Carvana, alleging its turnaround is a "mirage" built on unstable loans and accounting manipulation. Hindenburg claims in its report that Carvana engaged in $800 million in undisclosed loan sales, manipulated accounting practices, and extended borrower loans to mask delinquencies. The report scrutinizes CEO Ernie Garcia III and his father, Ernest Garcia II, Carvana’s largest shareholder, citing their intertwined financial dealings. The company’s stock surged 400% in 2023. Shares closed down less than 2% on Thursday.