Hyliion stock dropped 13–17% in a single session after a short-seller report challenged the credibility of a $133 million deal

NEW YORK, July 6, 2026 /PRNewswire/ -- Investors in Hyliion Holdings (NYSE: HYLN) lost up to 17% of their position value in a single trading session after Pelican Way Research published a report questioning the credibility of HYLN's $133 million VFG Holdings Letter of Intent. Shareholders who lost money on their HYLN investment are encouraged to submit their information to discuss their legal rights. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.

The VFG LOI represented approximately one-third of HYLN's disclosed 400 million pipeline. On the Q4 2024 earnings call, CEO Thomas Healy described the deal as a signed commitment "to supply prime power on site for data centers, an opportunity for up to an additional 70 megawatts or 350 of our KARNO 4-shaft systems." The short-seller report alleged that VFG appeared to lack the necessary resources to support the approximately133 million opportunity. HYLN shares fell 13–17% the same day the report was published.

Prior to the drop, the VFG LOI had been a central driver of HYLN's share price appreciation. The single-session reversal erased a significant portion of those gains.

If you purchased Hyliion shares and suffered a loss, click here to discuss your legal rights with Levi & Korsinsky. You may also contact Joseph E. Levi, Esq. via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500.

Levi & Korsinsky, LLP | Top 50 Securities Firm | (212) 363-7500 | www.zlk.com

Frequently Asked Questions About the HYLN Investigation

Q: Who is eligible to participate in the HYLN investigation?A: Investors who purchased HYLN stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: Which statements are being investigated as potentially misleading?A: The investigation concerns whether Hyliion Holdings made materially false or misleading statements regarding the credibility of its 133 million VFG Holdings Letter of Intent and the strength of its 400 million pipeline. When a short-seller report challenged these representations, the stock price declined sharply.

Q: How much did HYLN stock drop?A: Shares fell approximately 13–17% in a single trading session after the Pelican Way Research report was published, reversing a significant portion of the 150%+ rally that followed the initial VFG LOI disclosure.

Q: What do HYLN investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.

Q: What happens after I contact Levi & Korsinsky?A: An attorney will review your trading history at no cost and provide an initial assessment of your potential recovery.

Q: What if I already sold my HYLN shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought HYLN and sold at a loss may still participate in the investigation.

Q: Do I need to go to court or give testimony?A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.

Q: What does it cost me to participate?A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

CONTACT:\

Levi & Korsinsky, LLP\

Joseph E. Levi, Esq.\

Ed Korsinsky, Esq.\

33 Whitehall Street, 27th Floor\

New York, NY 10004\

jlevi@levikorsinsky.com\

Tel: (212) 363-7500\

Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP