Hindenburg Research published a report alleging that Carvana, a $44 billion online used car dealer, engaged in accounting manipulation and related-party transactions to inflate its reported earnings. The report details how Carvana's CEO's father, a convicted felon, sold billions of dollars in Carvana stock while the company faced financial distress, and then repeated this pattern after a subsequent surge in the stock price. The report highlights concerns about Carvana's risky lending practices, high loan delinquencies, and its reliance on a single major financing partner, Ally Financial, which is reportedly reducing its purchases of Carvana's loans. Furthermore, the report alleges that Carvana used undisclosed related-party transactions to mask its true financial condition and artificially boost its valuation. Hindenburg concludes that Carvana is likely insolvent and that shareholders and bondholders will ultimately lose money.