The research firm alleges that the videogame company has exaggerated user data and compromises child safety.

Hindenburg Research on Tuesday disclosed a short position in Roblox, saying the videogame company has been lying to investors and regulators about the number of users on its platform.

The company conflated "people" with its daily active users, based on its own definition of DAUs which says the metric is not a measure of "unique individuals accessing Roblox". Roblox did not immediately respond to a Reuters request for comment.