Muddy Waters Research founder Carson Block announced a new short position in E.l.f. Beauty, Inc (NYSE:ELF) at the Sohn conference on Wednesday, which sent shares of the cosmetics company tumbling. Here’s a look at why the short seller is betting

E.l.f. Beauty rejects Muddy Waters' allegations of inflated revenue, citing strong sales data and solid financial controls.

Short-seller Carson Block has a new target: e.l.f. Beauty. Speaking at the Sohn investment conference in London Wednesday, the founder of Muddy Waters Research raised questions about the company's sales,

E.l.f. Beauty had recently reported strong Q3 earnings in early November, delivering a beat-and-raise that boosted investor confidence and regained momentum for the stock. However, the release of the short-seller report has erased all recent gains,

The short seller's report stated that, over the past three quarters, e.l.f. Beauty has “materially overstated revenue” by about $135 million to approximately $190 million. Als