Solana News Today: Whale's 20x Short on SOL Rakes in $15.9M as Merger Sparks Legal and Investor Skepticism

A major whale investor significantly increased its short position on SOL, using 20x leverage to amplify gains. The position now carries an unrealized profit of around $15.9 million amid a broader market reaction to the company's recent merger. The move highlights growing skepticism about the value of the deal, which has drawn attention from legal and investor groups.

Emeren Group Ltd, a renewable energy developer and operator of solar and energy storage projects, finalized its merger with Shurya Vitra Ltd. in late December. Under the agreement, each ordinary share was exchanged for $0.20, and American Depositary Shares (ADSs) were redeemed for $2.00 each according to the announcement. The company has requested delisting from the NYSE, with shares suspended as of December 15, 2025 per stock market reports.

The merger has faced legal scrutiny, with multiple law firms questioning whether the terms fairly compensate Emeren's shareholders. Kahn Swick & Foti, LLC and Halper Sadeh LLC are both investigating the deal, suggesting the price may undervalue the company. These inquiries add a layer of uncertainty, as investors weigh the implications of the transaction.

Market Sentiment and Whale Moves

The whale's aggressive shorting of SOL has aligned with broader market concerns about the merger's fairness. Short sellers typically act on expectations of declining stock value, and the 20x leverage used in this case underscores strong bearish conviction. Given the unrealized gains of nearly $16 million, it appears the whale has positioned itself well for a potential drop in the stock's intrinsic value post-merger.

Emeren's stock performance prior to the merger was already weak, with the share price down over 5% in the past year. A P/E ratio of -10.55 and a negative return on equity of -2.9% further highlight the company's financial challenges. These metrics have likely contributed to the skepticism surrounding the $0.20 per share offer, which appears to reflect a deep discount to the company's book value.

Investor and Legal Reactions

The merger has drawn significant legal and shareholder attention. Two prominent law firms are now probing whether the process adhered to best practices and whether the consideration adequately reflects the company's worth. Kahn Swick & Foti, led by former Louisiana Attorney General Charles Foti, has urged shareholders to assess their legal options. Meanwhile, Halper Sadeh LLC is examining potential breaches of fiduciary duty and whether critical information about the merger was withheld according to legal analysis.

These investigations could influence future shareholder sentiment and even the outcome of the deal. If either firm uncovers evidence of underpayment or procedural negligence, the merger could face legal challenges that delay or alter its terms. Shareholders remain divided, with some viewing the $0.20 per share as a fair settlement and others believing it fails to capture the company's long-term potential.

Technical and Market Outlook

From a technical standpoint, the stock shows mixed signals. The RSI (Relative Strength Index) suggests moderate momentum, while indicators like the MACD and ATR point to increased volatility and bullish signals according to technical analysis. However, given the merger's completion and delisting, these metrics may lose relevance in the near term. The stock is no longer traded actively, and future price movements will depend largely on legal developments and broader market conditions.

Emeren Group's transition to a privately held subsidiary of Shurya Vitra Ltd. closes a chapter of its public life but opens new uncertainties. Investors with existing positions will likely monitor the legal investigations closely, while the short sellers who capitalized on the merger's completion may see their positions solidified if the deal faces prolonged challenges.