[1] It has exposed accounting problems and fraud at several companies, primarily in China but also in other countries in Asia, Europe and North America.

[2] It is best known for spotting fraud at Sino-Forest Corp, a Canadian-listed Chinese company whose stock fell 74% before it eventually filed for bankruptcy protection in March 2012.

As a result, shares of Sino-Forest fell by 82% following Muddy Waters report, forcing prominent investor John Paulson to sell his entire stake at a $US720 million loss.

Shortly after German Federal Financial Supervisory Authority inquired the case suspecting overstepping of ethical and legal lines by Muddy Waters Capital.

One aspect dealt with Muddy Waters failing to report the build up of a short-position exceeding 0,5% of stocks in due time.

[11] St. Jude Medical denied the claims made by Muddy Waters, stating that they were "false and misleading" and sued the firm for defamation.

[12] In January 2017, the U.S. Food & Drug Administration and the Department of Homeland Security released the results of an investigation into St. Jude's cybersecurity vulnerabilities, which confirmed the findings of Muddy Waters.

[15][16][17] On June 29, 2017, Muddy Waters opened research into Prothena Corp PLC, a biotech company whose leading product the shortseller claimed was commercially unviable.