Carvana stock plunged 14.2% after short-seller Gotham City Research accused the online retailer of overstating earnings by over $1 billion using businesses linked to CEO Ernie Garcia III’s family.

Gotham City Research revealed audited 2024 financials of DriveTime Automotive Group and Bridgecrest Acceptance Corp, both owned by Garcia II, Carvana’s largest shareholder.

Short-seller reports claim Carvana’s earnings rely on debt issuance, “toxic” loans, and accounting irregularities linked to related parties, including DriveTime’s owner, Ernest Garcia II.

Carvana did not immediately respond to Gotham City Research’s accusations, which are part of a series of short-seller attacks against the company in recent years.

Carvana’s stock has been on a rollercoaster ride, with shares surging from under $5 to over $477 per share, following a bankruptcy scare in late 2022. Shares closed at $410.04, down 14.2% on Wednesday, marking the company’s second-worst trading day in a year.

Read more at CNBC: Carvana shares fall 14% following short-seller accusations