Grizzly Short Hits Trustpilot Amid Harsh Review-Manipulation Claims

Trustpilot Group Plc (TRST:LN), long regarded as one of the most visible consumer-review platforms in Europe, experienced a dramatic market shock this week. On December 4, shares plunged roughly 30 percent following two catalysts:

• A newly disclosed short position from Grizzly Capital Management LP

• A scathing 43-page report from activist short seller Grizzly Research LLC accusing Trustpilot of systemic manipulation, coercive practices, and fraudulent review activity

The sell-off pushed the stock to fresh 52-week lows despite strong underlying financial performance and ongoing buybacks.

The Short Position: 0.58% and Perfectly Timed

According to UK short disclosure data, Grizzly Capital Management LP opened a 0.58 percent short position in Trustpilot on December 3, 2025, with the disclosure published the following day.

Almost immediately after the disclosure and the release of the associated research report, the market reacted sharply. Trustpilot’s share price dropped by about 30 percent, placing it among the worst performers on the FTSE 250.

The Trigger: A Report Accusing Trustpilot of “Mafia-Style” Tactics

Grizzly Research’s report, titled “The Trustpilot Mafia – How the Extortion Model Destroys Trustpilot’s Value Proposition,” levels some of the most aggressive allegations seen against a public SaaS platform in recent years. These allegations include:

• Unsolicited business profiles designed to attract negative reviews

The report claims that Trustpilot automatically creates profiles for businesses, leading to a flood of negative consumer reviews and pushing companies toward paid subscription plans.

• Paying clients see review scores “magically” improve

According to interviews cited in the report, businesses that subscribe allegedly see their ratings jump from below 2 stars to above 4 stars.

• Selective enforcement of moderation policies

The report claims Trustpilot removes negative reviews for paying clients while leaving obviously fake positive reviews in place.

• Review gating and manipulation

Insiders interviewed by Grizzly allegedly described internal tactics that help paying customers solicit only positive reviews.

• An ecosystem of fake reviews

Grizzly highlights hundreds of ads on BlackHatWorld and similar forums openly selling “sticky” Trustpilot reviews, fake reviews designed to evade removal.

• Heavy dependence on Google’s search ranking

The report warns that if Google decides to reduce Trustpilot’s visibility due to fake-review concerns, the platform’s business model could be severely damaged.

Important context

Grizzly explicitly states it holds a financial short position and stands to benefit if Trustpilot’s share price declines.

All claims in the report are framed as opinion, not fact.

Market Reaction and Rising Scrutiny

Grizzly’s allegations quickly gained traction across financial media. Reuters reported Trustpilot among the biggest FTSE 250 fallers after the short position was revealed, while Investors’ Chronicle highlighted the “mafia-style” claims and the absence of an immediate company response. Independent market commentators amplified the report, adding momentum to the sell-off.

The impact was heightened by the broader scrutiny already surrounding online review platforms. SafePaper recently warned that millions of reviews across major platforms may be fake or AI-generated, and The Guardian highlighted cases of scam investment firms boosting credibility through fabricated Trustpilot ratings. This existing backdrop of trust concerns likely intensified the market’s reaction to Grizzly’s report, and as of now, Trustpilot has issued no formal regulatory response.

Trustpilot’s Fundamentals: Strong But Vulnerable

While the controversy dominates headlines, Trustpilot’s financial backdrop remains notable, though not immune to reputational risk. In its latest half-year results, the company reported:

• 23% revenue growth

• 70% jump in adjusted EBITDA

• Over $15 million in free cash flow

• Rising enterprise adoption, including Barclays, Boots, ING, Experian, and Lindt

• New AI-driven tools such as semantic search and review summarisation

• A rapidly growing base of customers spending more than $20k per year

Gross margins remain above 80%, and analysts continue to expect high-teens revenue growth for the full year. Confidence is further signaled by an ongoing £30 million share buyback (over 10.3 million shares repurchased since September) and a recent increase in JPMorgan Asset Management’s stake to 5.01%, indicating long-term institutional support.

However, the sharp market reaction shows how quickly narrative risk can undermine these positives. If the allegations gain traction with investors or customers, even robust financials, buybacks, and institutional backing may be insufficient to maintain sentiment. Analysts maintain Buy ratings with price targets roughly double the current share price, but these upside expectations depend heavily on Trustpilot’s ability to address the credibility and integrity concerns raised.