IonQ Inc. (NYSE: IONQ) Stocks are trading lower on Tuesday following a brief report from Scorpio Capital.

Activist short seller claims IonQ’s state-of-the-art quantum computer is a hoax, backed up by misleading photos. Scorpion Capital suggests IonQ is taking SPAC abuse to “new extremes”.

The company says IonQ is more of a side business than an actual business, calling the company’s quantum computer a “useless toy” that can’t even perform a simple addition. Scorpion Capital alleges that IonQ’s income is fictitious due to “fictitious transactions and back and forth between related parties”.

Scorpion Capital even suggests that the CEO of IonQ Pierre Chapman falsified his diplomas. If the brief report is accurate, several large companies will be impacted alongside IonQ.

Last year, Chapman told Benzinga that IonQ had investments or partnerships with Alphabet Inc. (NASDAQ:GOOG), Amazon.com Inc. (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT), among others.

The fact that the company’s competition has partnered with or invested in IonQ is an indication of its position in the quantum ecosystem, Chapman said: “We’re so far ahead.”

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IONQ Price Action: IonQ traded as high as $35.90 over a 52-week period. It hit 52-week lows on Tuesday.

The stock was down 10.2% at $7.06 at press time.

Photo: courtesy of IonQ.

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