Shares of Abaxx Technologies Inc (TSX:ABXX) plunged 13.8% on Thursday following a public disclosure by short-seller Viceroy Research that it held a short position and had published an investigative report questioning the company’s exchange activity.
Viceroy posted its short position on social-media platform X and outlined a series of allegations regarding the operations of Abaxx’s exchange. The short-seller asserted that reported volumes on the exchange are largely artificial - driven by wash-traded churn propped up by incentive payments - and that the volumes would disappear if the incentives were stopped.
The report described Abaxx’s reported trading as being dominated by lot-matched calendar spreads and pre-arranged block trades. Viceroy said most trading sessions conclude with open interest at or near zero, and that the visible central limit order book typically shows minimal size, wide bid-ask spreads and limited depth.
According to the short-seller, the apparent activity on the exchange is subsidized through rebates and payments to market makers. Viceroy questioned whether such a subsidy-dependent model can be sustained, suggesting the company may need to raise capital repeatedly to continue operations at current levels.
Viceroy’s report also raised governance and related-party questions. It noted that CEO Josh Crumb serves as a director of a Kilo Capital subsidiary, and that the director of Abaxx Singapore is the chief investment officer of Ivanhoe Capital, which Viceroy described as a "strategic investor." The short-seller suggested those relationships were not adequately disclosed.
Additional allegations in the report included an assertion that CBOE has exited its strategic investment in Abaxx Exchange, a conclusion Viceroy said it reached after reviewing filings in Singapore. The short-seller further stated that Abaxx’s patent application was rejected in April 2025 and that an appeal was denied in November 2025.
Summarizing its view, Viceroy labeled Abaxx as "uninvestable," arguing the company lacks a clear route to profitability and that the exchange fails to support authentic hedging activity or true price discovery.
Context and implications
The allegations center on market structure, transparency, and the sustainability of an incentive-driven trading model. They directly implicate Abaxx’s exchange business and governance practices, and by extension touch on investor confidence in the firm’s ability to operate a credible trading venue without ongoing subsidy.
Regulatory, capital markets and technology sectors are most directly affected by the issues raised, given the focus on exchange operations, investor relations and patent outcomes.