Block, the payments company headed by former Twitter CEO Jack Dorsey, is Hindenburg's next target

Hindenburg Research latest report targets Jack Dorsey's firm Block, formerly known as Square.

Block is one of the earliest digital payments platforms to allow Bitcoin transactions. It's also developing more decentralized Bitcoin mining solutions in addition to its wallet services.

WHAT HINDENBURG RESEARCH CLAIMS:

• Block has systematically taken advantage of the demographics it claims to be helping
• Block is not disruptive innovation
• Company willing to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology
• Company misled investors with inflated metrics
• Block overstated its genuine user counts and has understated its customer acquisition costs
• Company has a 'wild west' approach to compliance

Shares of Block fell 18% in premarket trading after the report. According to Ortex data, 5.2% of Block's open float shares were short as of March 22.