GigaCloud Technology (NASDAQ:GCT) stock is on the move Friday after the end-to-end e-commerce service company was hit with a short report.

Culper Research is behind that short report that has shares of GCT stock in the news today. The short report claims that the company overstates its business and calls out its claims to have utilized artificial intelligence (AI) to improve its supply chain.

Here’s what Culper Research said about GigaCloud Technology in its thread on social media platform X announcing its short report:

“GCT exhibits classic hallmarks of past “China Hustle” implosions: Cayman incorporation, Chinese auditor, cash held offshore despite US operations and USD financial statements, and very little interest income despite supposedly large cash balances.”

GCT Stock Jumps Despite Short Report

Even with this short report, shares of GCT stock are on the rise Friday. That increase comes after the company came out with a statement against the short report, as collected from Seeking Alpha:

“The report demonstrates a fundamental lack of understanding of the company’s business and financial condition. The company is reviewing the claims and considering appropriate courses of action to protect the interests of all of its shareholders.”

Trading activity on Friday has some 1.5 million shares of GCT stock changing hands. That’s heavy compared to its daily average trading volume of about 820,000 shares. It also has the company’s stock up 8.7% as of Friday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.