I'm done with this idiot's clickbait X/tweets

He started with the Japanese Carry Trade to crush the market and now calls Nvidia's earnings report a $601 Billion fraud. Both tweets caused an uproar on the Internet, and were themselves frauds.

This is what shanaka86 (@Shanaka Anslem Perera ) posted: https://substack.com/inbox/post/179506626

“AI detected $610B fraud in 1 hour, erased $520B before humans finished reading. Machines now control markets. Nov 20, 2025: the day human price discovery died. Every bubble collapses 70% faster now. The algorithm won.”

I’ve analyzed both the earnings report and the tweet carefully. Let me provide a correct assessment:

The Fraud Accusation Analysis

After reviewing Nvidia’s official Q3 FY2026 earnings report against the fraud accusations, I believe the author’s claims are significantly exaggerated and misleading. They do highlight some legitimate financial metrics worth monitoring, so at least we can learning something about Nvidia.

What the Earnings Report Actually Shows

Legitimate concerns raised:

1. Accounts Receivable: $33.4B (up from $23.1B in January 2025)

2. Days Sales Outstanding (DSO): Can be calculated at approximately 53 days

3. Inventory: $19.8B (up from $10.1B in January 2025)

4. Operating Cash Flow: $23.75B vs Net Income of $31.9B (75% conversion)

However, the context matters:

• Revenue grew 22% quarter-over-quarter to $57.0B

• Revenue grew 62% year-over-year

• Gross margins remain strong at 73.4%

• The company generated $23.75B in operating cash flow in just one quarter

• Free cash flow was $22.1B for the quarter

Problems with the Fraud Accusation

1. Misleading framing: The increases in receivables and inventory align with massive revenue growth. When you grow revenue 62% year-over-year, working capital naturally increases.

2. Cherry-picked comparisons: The author compares Nvidia’s DSO to competitors without acknowledging that Nvidia’s business model includes significant data center infrastructure sales with different payment terms than commodity semiconductors.

3. The “circular financing” conspiracy: The author claims Nvidia invests in companies that buy its products, creating fake revenue. However:

• These are disclosed equity investments

• The revenue from these customers is real, not circular

• Many customers (Microsoft, Google, Meta) are independent major corporations

4. Inventory analysis: The author claims rising inventory contradicts strong demand, but:

• Companies typically build inventory before product launches

• Blackwell was in ramp-up phase

• Q4 guidance of $65B revenue (up from $57B) suggests this inventory will convert to sales

5. “AI detected fraud in 18 hours”: This is theatrical nonsense. What actually happened was:

• Stock initially rose 5% after earnings

• Market digested results over time

• Broader tech sector had a down day

• This is normal market volatility, not “fraud detection”

Is This Actually Fraud?

No evidence of fraud. What the report shows is:

• A rapidly growing company with expanding working capital needs

• Aggressive growth investments

• Strong but moderating margins

• Normal enterprise sales payment terms

The metrics the author cites (DSO, inventory turns, cash conversion) are legitimate areas for investor scrutiny, but they’re far from evidence of “the largest accounting fraud in technology history.”

The Real Story

This appears to be:

1. Sensationalist short-seller promotion or clickbait content

2. Taking normal working capital dynamics of a hyper-growth company and framing them as fraud

3. Comparing a company growing 62% year-over-year to mature, slow-growth competitors

4. Ignoring that Nvidia’s actual audited financials show massive real cash generation

Bottom Line

The author’s fraud accusation is unfounded hyperbole, though legitimate questions exist about:

• Sustainability of growth rates

• Working capital efficiency

• Customer payment terms

• AI industry economics

But these are normal investment considerations, not fraud indicators. The theatrical claim about “AI detecting fraud in 18 hours” is pure fiction designed to generate attention.

Normally, I would ignore this person’s tweets, but he made another alarming and grossly misleading post earlier this week. I wrote about it: