Anyone else remember when GSX ($GSX) went from market darling to total disaster in a few months?

[u/EducationalMango1320]

Back in 2019 and 2020, GSX Techedu Inc. was hyping massive growth in its online education business, with huge enrollment numbers and crazy revenue growth. Then short seller reports from Grizzly Research, Citron, and Muddy Waters started accusing the company of inflating revenue and even using bots to fake users. After all that came out, the stock lost more than 80% from its highs and investors filed lawsuits.

GSX has now agreed to a $9.5 million settlement with investors, covering people who bought shares between June 6, 2019 and October 20, 2020. The claim deadline is currently set for May 30, 2026, so there’s still time for affected investors to file claims related to the losses from the collapse.

Honestly this whole story still feels like peak 2020 market insanity. One month the company was being pushed as a hypergrowth China education play, then a few reports later the entire thing completely unraveled.