SoFi Technologies Faces Scrutiny Amid Short Seller Allegations
San Francisco, Tuesday, 17 March 2026.
SoFi Technologies’ stock tumbled in mid-March 2026 after Muddy Waters Research announced a short position, alleging the digital banking platform hides at least $312 million in unrecorded debt.
The Muddy Waters Allegations Unpacked
The sharp decline in SoFi Technologies’ (NASDAQ: SOFI) stock price on March 16 and 17, 2026, was primarily catalyzed by a scathing report from short-selling firm Muddy Waters Research [2][4]. The firm alleged that the digital financial services provider has engaged in aggressive accounting practices, materially misstating at least $312 million in unrecorded debt [4]. Furthermore, Muddy Waters claimed that SoFi’s reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1,054 million was artificially inflated by approximately $950 million [4]. This alleged inflation stems from manipulated charge-off rates, with the short seller calculating a personal loan charge-off rate of roughly 6.1%, which stands in stark contrast to the 2.89% figure reported by the company [4]. Consequently, SoFi shares tumbled approximately 5% on March 16 and continued to face downward pressure, dropping another 5.84% by March 17 [2][7].