In February 2022, securities analyst, Dan Bustamante was one of the first to release a public thesis on “Carvana The Masterclass Scheme” calling the company “a tool to enrich insiders”. This was published in The Long Vol Report when the stock was trading near $150 in Q1 of 2022.
Bustamante called for the stock to go to $0 in February and in December 2022 when the stock was trading near $5 told Forbes “I’m surprised it’s taken this long”.
The research was posted in The LongVol report and and expanded research piece in DeltaOne. The trade was put on in February of 2022 with shares (short) and put options through leaps and various expirations. When the first thesis was released journalists from Bloomberg, Forbes and CNBC reached out but did not publish or comment on the claims of the stock trading to $0. It was not until later in 2022 when the stock dropped below $10 on bankrupcty concerns that they began to reach out.
I exited the majority of the short into $25-$33s and held some of the longer term puts as well.
In April of 2022 after it seemed it was certain to go bankrupt I released a video on YouTube explaining why.