WiseTech Global (ASX: WTC) shares tumbled 11% in early Sydney trading to A$32.75, marking a sharp deterioration in sentiment for the logistics software group.
The sell-off was driven by fresh media reports detailing a police investigation into the company’s founder and chairman, Richard White.
The allegations have reignited concerns about corporate governance and leadership stability at the ASX-listed firm.
Market participants responded swiftly to the news, with short-selling activity surging.
Approximately one in five shares traded on Tuesday were sold short, indicating that hedge funds are significantly ramping up their bearish positions.
This aggressive shorting underscores a loss of confidence among institutional investors, who appear to be pricing in further downside risk amid the unfolding scandal.