Editor's Note: This story has been updated to include a statement from a Carvana spokesperson.

Short seller Hindenburg Research is betting against Carvana Co ( CVNA ) with the stock up more than 300% over the past year. Despite the bearish report, shares are moving higher on Thursday. Here’s a look at what you need to know.

What To Know: Hindenburg announced a short position against used car retailer Carvana on Thursday in a report titled, “Carvana: A Father-Son Accounting Grift For The Ages.”

The short seller noted that Carvana shares have soared over the past year on hopes that the worst is behind the company after the car seller battled bankruptcy risks in 2022 and 2023.

“However, our research, including extensive document review and 49 interviews with industry experts, former Carvana employees, competitors and related parties of the company, undertaken over the course of 4 months, shows Carvana's ( CVNA ) turnaround is a mirage,” Hindenburg alleged.

A spokesperson for Carvana told Benzinga that Hindenburg’s report is “misleading and inaccurate.”

"In the 7 years since our IPO, Carvana has been one of the most heavily researched public companies. The arguments in today's report are intentionally misleading and inaccurate and have already been made numerous times by other short sellers seeking to benefit from a decline in our stock price. We plan to stay focused on executing our plan for another great year in 2025,” a Carvana spokesperson said.

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Carvana shares fell about 5% when the report was released, but quickly bounced back. The stock was up more than 3% at last check, according to Benzinga Pro.

Hindenburg claimed its research uncovered “accounting manipulation and lax underwriting” that have “fueled temporary reported income growth.” The short seller said it also found $800 million in loan sales to a “suspected undisclosed related party.”

Hindenburg went on to highlight recent insider selling, suggesting the company’s share price is inflated. All findings aside, the short seller believes the stock is “exorbitantly valued,” trading with a 845% higher sales multiple than competitors CarMax and AutoNation, and a 754% higher forward earnings multiple. Carvana currently has a forward price-to-earnings multiple of approximately 101, according to Benzinga Pro.

CVNA Price Action: Carvana shares were up 3.37% at $210.20 at the time of publication Thursday, according to Benzinga Pro.