DVLT Escalates Legal Battle Against Wolfpack Research Short Attack

Reddit investor sentiment shows strong support for DVLT’s legal response to Wolfpack Research, with multiple users decrying short-selling as destructive and backing the company’s decision to sue [1]. Retail investors frequently cite DVLT’s $23M IBM partnership and Scilex relationship as evidence countering fraud allegations [1]. However, some commenters note that DVLT’s response appears to avoid addressing Wolfpack’s specific claims directly, suggesting it may be primarily a legal tactic rather than substantive rebuttal [1]. Discussion includes references to coordinated bot campaigns promoting DVLT and related microcaps, raising concerns about potential market manipulation on both sides [1].

Wolfpack Research published a short-seller report targeting DataVault AI and CEO Nathaniel T. Bradley in October 2025, disclosing a short position in DVLT shares [2][3]. DVLT responded on October 31, 2025, characterizing the report as a malicious “short-and-distort” attack built on false and defamatory claims intended to manipulate the company’s share price for financial gain [2][3]. The company has retained prestigious law firms Paul Hastings LLP and Dickinson Wright PLLC, with Jacob Frenkel (Securities Enforcement Practice Chair at Dickinson Wright) serving as lead litigation counsel [2][3]. DVLT has formally demanded Wolfpack Research cease and desist its tortious conduct and announced plans to pursue all available legal remedies including claims based on false statements and market manipulation [2][3].

Both Reddit discussions and company responses confirm this is an active legal confrontation, but neither source provides detailed insight into Wolfpack Research’s specific allegations against DVLT. The company’s aggressive legal posture, including retention of top-tier securities litigation counsel, suggests they take the threat seriously and have confidence in their position. Reddit’s focus on DVLT’s partnerships and IP portfolio aligns with the company’s public emphasis on its 70+ patents and strategic relationships as fundamental value drivers [2][3]. However, the lack of detailed rebuttal to specific claims noted by Reddit commentators could indicate either legal strategy constraints or potential substance to some allegations.

• Legal proceedings could be prolonged and expensive, potentially draining resources
• If Wolfpack’s allegations have merit, DVLT could face regulatory scrutiny beyond civil litigation
• The bot campaign mentions on Reddit suggest potential market manipulation concerns
• Short-seller attacks historically have caused significant stock price volatility

• Successful legal defense could validate DVLT’s technology and business model
• Current volatility may present entry points for long-term believers in the technology
• The $23M IBM partnership and 70+ patent portfolio provide fundamental support if legitimate
• Resolution of legal uncertainty could unlock significant upside if company fundamentals remain intact