Massachusetts-based biotechnology company, Ginkgo Bioworks Holdings, Inc. (DNA), fell 20% in the market on Wednesday. The company has not reported any stock-specific news to affect the movement of the shares, however, allegations of a fraudulent business model can be attributed to the fall. On Tuesday, a short seller, Scorpion Capital released a 175-page document alleging that Ginkgo operates through a "shell game", an evasive technique of scam. The seller also dubbed the company to be "one of the most brazen frauds of the last 20 years." The paper also claims that the company revenue model is heavily dependent on "'customers' that it created, funded, controls, or influences via its ownership position and board seats." Ginkgo went public back on September 17 and the stock is currently at the lowest since its debut. The shares are trading at $9.44, down $2.54 or 21.20% since the previous close at $11.98. The share opened at $11.49. In the 52-week period, the stock ranged between $9.13 and $14.25 per share.
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