Ostin(US:OST) Globenewswire·2026-03-09 20:00Core Insights - The article discusses a significant fraud case involving Ostin Technology Group Co., Ltd. (Nasdaq: OST), where retail investors were misled into believing in a lucrative investment opportunity, leading to a catastrophic stock price drop of 94.1% on June 26, 2025, resulting in over $950 million in market capitalization loss [1] Group 1: Investor Sentiment and Manipulation - A coordinated promotional campaign began in May 2025, utilizing fake investment advisor identities and AI-generated deepfake videos to create a false sense of institutional endorsement for OST [3] - WhatsApp groups were used to disseminate buy signals, with instructions to purchase OST shares between $4.50 and $5.00, creating artificial peer pressure among investors [3] - Initial recommendations of legitimate stocks that yielded small gains were made to establish credibility before directing victims towards OST [4] Group 2: Suppression of Dissent and False Promises - Members expressing skepticism in WhatsApp groups were removed to maintain a facade of enthusiasm [4] - Fabricated acquisition rumors suggested a major OLED display company would acquire OST at a premium, supported by a fake 20-page market analysis [4] - Promises of unrealistic returns, such as "15-25% weekly returns" and profits "up to 300%", were made despite OST's modest $38 million annual revenue and negative 27% profit margin [4] Group 3: The Collapse and Aftermath - On June 26, 2025, victims were advised to hold their shares until July 4, but coordinated selling led to a dramatic collapse, with trading volume reaching 34.55 million shares, over five times the daily average [5] - Individual losses varied significantly, with some investors losing amounts ranging from $7,000 to over $1,000,000, impacting life savings and college funds [5] - The fraud affected investors across multiple countries, including the United States, United Kingdom, Germany, Israel, Canada, Italy, the Netherlands, Switzerland, and Croatia [5]