Techub News reported that Canadian exchange operator Abaxx Technologies has hired the U.S. law firm Paul Weiss and asked Canadian market regulators to investigate whether trading in its shares was subject to market manipulation by short seller Viceroy Research. The request follows Viceroy Research’s public disclosure of a short position against Abaxx and the release of a report targeting Abaxx Exchange.
Viceroy Research disclosed its short position in Abaxx on June 11. In its report, the short seller accused Abaxx Exchange of wash trading to inflate trading volume. Abaxx has denied the allegations, saying the claims form part of a manipulation effort planned by the short seller for profit.
Abaxx said it has informed regulators in Canada and Singapore about the matter. The company also emphasized that there is currently no regulatory investigation underway against Abaxx. The dispute is now centered on Abaxx’s response to Viceroy Research’s short position and its request for regulators to review whether the related trading activity amounted to market manipulation.