The stock market was largely in positive territory on Thursday morning, but fintech innovator Block (NYSE: SQ) was a big exception. As of 10 a.m. ET, Block's shares had lost a staggering 20% of their value, heading sharply in the opposite direction of the overall financial sector.

The reason for the massive plunge in Block is a report by notable short-seller Hindenburg Research announcing its short position in the fintech stock.

In a nutshell, Hindenburg accuses Block of inflating Cash App's user base and having very little in the way of fraud controls. Over a two-year investigation, Hindenburg claims it has taken advantage of the unbanked people it claims to be helping by facilitating illegal activity.

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Source Fool.com