Roblox is under fire from Hindenburg Research, which accuses the company of inflating its daily active user metrics by 25-42% and engagement hours by over 100%, misleading investors and regulators. The report claims that Roblox's user numbers include bots and multiple accounts, not unique users, contributing to a distorted view of user engagement. Additionally, Hindenburg describes the platform as a 'pedophile hellscape,' citing findings of inappropriate content and child exploitation, including games with disturbing themes accessible to young users. Roblox has not yet responded to these serious allegations, and shares fell nearly 10% following the report's release. The firm has highlighted ongoing financial losses for Roblox, which has not reported a profitable quarter since going public. This scrutiny raises significant concerns about the safety and integrity of the platform for its primary audience of children and teenagers.