• Wolfpack pointed out that 96% of York’s revenue last year came from the Pentagon’s SDA program.
• York shareholders are to experience a “rug-pull” and can expect “billions in dilution,” Wolfpack said.
• Short interest on YSS stock stood at 4.50% as of May 11, per Koyfin data.

Shares of York Space Systems (YSS) tumbled on Monday after Wolfpack Research revealed it is short on the stock.

Wolfpack stated that it believes retail investors who bought York shares as a play on a SpaceX IPO will experience a massive rug pull. The firm said in its report that the company has lost the Pentagon’s Space Development Agency (SDA) program as a crucial revenue source, as the U.S. government arm moved to dissolve it entirely.

Wolfpack Sees ‘Dilution’ Of YSS Stock

Wolfpack pointed out that 96% of York’s revenue last year came from the Pentagon’s SDA program. “The program York relied on is being replaced by a program built around SpaceX as the sole-source provider,” Wolfpack stated.

“We spoke with multiple former employees who were highly critical of York and heard claims that York deceived the SDA with false advertising to win its contracts, cut corners, and delivered satellites whose mission-critical software was not completed.”

The firm said investors can expect “billions in dilution” as York pursues a major acquisition spree to offset its revenue losses.

What Retail Traders Think Of YSS Stock

On Stocktwits, retail sentiment about YSS remained ‘bearish’ over the last 24 hours.

One user on the platform noted the short-seller report but said they will revisit the stock after earnings on Thursday.

Street Expectations From YSS Earnings

For the first quarter, analysts expect revenue to be $109.6 million and a loss of $0.11 per share, according to data from Fiscal AI. As of the writing, the short interest on YSS is 4.50% as per Koyfin.

YSS stock has lost more than 8% so far this year, and has gained 2% over the past 12 months, underperforming the S&P 500.

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