Culper Research announces shorting ETH and

PANews reported on March 6 that the short-selling firm Culper Research announced it is shorting Ethereum and ETH-related securities, including BMNR. The firm believes that after the Fusaka upgrade in December 2025, the ETH token economic model has been damaged. The upgrade raised the Gas limit from 45 million to 60 million, which was expected to reduce Gas fees by 10-30%, but in reality, the fees dropped by about 90%. Vitalik and validators' calculations regarding L1 demand elasticity were based on outdated models, with errors ranging from 3 to 9 times.

Culper refuted Tom Lee's bullish view. Lee cited the growth of active addresses and transaction volume as evidence of ETH's fundamental strengthening and institutional adoption, but Culper's analysis shows that on-chain data from January 2025 to February 2026 indicates that these activities were actually driven by a surge of low-value transactions caused by address poisoning and dust attacks. After the Fusaka upgrade, 95% of new wallets were created for dust attacks, and the number of poisoning attacks increased more than threefold, accounting for over 50% of ETH transaction growth and currently representing 22.5% of all ETH transactions. Culper claims that Vitalik is well aware of this and is selling off, predicting that ETH will decline further.