On the Dash:Carvana shares dropped sharply after a short seller accused the company of overstating earnings through related-party transactions. The report claims Carvana’s financial performance is more dependent on businesses controlled by CEO Ernie Garcia III’s family than previously disclosed. Disbanded short seller Hindenburg Research last year disclosed a bet against the company, arguing that Carvana’s turnaround was a “mirage” supported by unstable loans and accounting manipulation. Despite those concerns, Carvana’s stock has staged a dramatic rebound since a bankruptcy scare in late 2022. The sharp decline underscores lingering investor sensitivity around Carvana’s financial structure and its reliance on affiliated businesses, even as the company has regained market confidence following its turnaround and index inclusion.