Hyliion Holdings Corp. (HYLN) shares fell more than 13% on Tuesday. Pelican Way Research triggered the decline by disclosing a short position and a report questioning a major customer agreement.
The report targets a letter of intent with VFG Holdings for 250 KARNO power cores. This deal is valued at approximately $133 million. The agreement previously caused Hyliion's stock price to surge.
Pelican Way Research alleges the deal is misrepresented and doubts VFG can support an order of this magnitude. The report notes VFG was registered in January 2026. LinkedIn data indicates the company has only four employees. VFG also maintains a minimal website with no listed physical address.
This specific deal represents approximately one-third of the $400 million pipeline Hyliion announced in its first-quarter earnings report.