Rezolve AI Stock Tumbles On Short Seller Accusations Here's What We Know

Shares of Rezolve AI (RZLV) slid over 9% by mid-morning trade on Monday, after short seller FuzzyPanda accused the company of overstating both its AI technology and its financial performance. 

FuzzyPanda alleged that Rezolve AI, which went public through a reverse merger, misled investors by presenting inflated claims about its AI tech and financial metrics. The firm argues these representations lack substantiation and call into question the credibility of Rezolve's public narrative. 

On Stocktwits, Rezolve AI was the top trending equity ticker on Monday afternoon. Retail sentiment around the stock remained in 'bullish' territory. Message volume shifted to 'normal' from 'high' levels in 24 hours. 

The stock saw a 97% increase in user message count over the last week. A bullish Socktwits user expressed faith in the company. 

Another user prodded the CEO, Daniel Wagner, to come clean on the accusations. 

In its short report, Fuzzy Panda asserts that Rezolve's public disclosures do not align with internal realities. It contends that the company portrayed its AI solutions as more advanced than they truly are and projected revenue trajectories that lack backing in operational performance.

Former employees allege that many of Rezolve's“clients” were nonbinding letters of intent, and that supposed strategic partners even sent cease‐and‐desist letters over unauthorized name usage.

In response, Rezolve AI has issued a strong rebuttal to the short‐seller report released by Fuzzy Panda, characterizing the accusations as false, misleading, and motivated by profit motives.

“Fuzzy Panda's report is a self-serving attempt to inject misinformation into the market. It is designed to spook genuine investors into selling so that short-sellers can cover their positions and profit from aggravated rumours and inferences,” said Founder and CEO, Daniel M. Wagner.

The company stated the report cherry‐picks outdated data, misinterprets its audited results and SEC filings, and ignores the actual state of its operations. 

Rezolve AI stock has gained over 40% in 2025 and has lost 20% in the last 12 months. 

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