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Understanding the OST Fraud Timeline

In April 2026, SueWallSt brought attention to a stark timeline that detailed the progression of fraudulent activities surrounding Ostin Technology Group Co., Ltd. (Nasdaq: OST). From an initial offering at a suspiciously low price to an astronomical jump and a devastating collapse, the events within just a 73-day period have sent shockwaves through the investment community. This article delves into the events that transpired, providing clarity on how nearly $950 million was wiped out from investors in a single day.

Key Dates and Events

April 14-15, 2025: The Foundations Begin

The timeline of deceit begins on April 14, 2025, where OST shares closed at a mere $0.78. The very next day, Ostin Technology executed a registered direct offering, placing approximately 9 million shares with a select group at the exceptionally discounted price of $0.55 each, a stark 31% decline from the previous close. This direct offering set the stage for the financial havoc that would follow, leading potential investors to wonder about the integrity of such steep discounts.

May 3-7, 2025: Massive Dilution of Shares

The situation escalated on May 3 when a Warrant Exchange Agreement was activated, exchanging 18,181,816 warrants for a whopping 70,909,082 new shares without any cash transactions. This drastic measure increased the outstanding shares from around 27 million to a staggering 107 million, causing a dilution effect of nearly 300%. The reckless issuance of new shares placed significant control in the hands of individuals believed to be part of a coordinated effort to manipulate stock prices.

May 11-June 25, 2025: The Promotional Blitz

Tensions escalated as a well-orchestrated promotional campaign exploded into action. From May 11 onwards, OST's stock price was artificially inflated through a variety of misleading tactics, including:

• - Fake profiles impersonating registered investment advisors, misleading potential buyers into trusting fake endorsements.
• - AI-generated videos featuring public figures endorsing OST, further misleading investors and creating a false sense of security.
• - Active WhatsApp groups, with participants receiving daily instructions on buying shares of OST, which drove urgency and excitement about the investment.
• - Fabricated acquisition stories, supported by dubious research reports that misled investors about the company's potential.
• - False promises of high returns, showcasing a bait-and-switch tactic where fraudulent advisors initially suggested legitimate stocks to build trust before promoting OST.

The bogus promotional efforts seemingly paid off, with OST's market capitalization rising from only $22 million to over $1 billion, despite the reality of continued annual losses totaling $10.6 million and negligible institutional investments, reported at merely 0.1%.

June 26, 2025: The Fall

The catastrophic finale occurred on June 26, 2025. As the fraudulent bubble burst, OST shares plummeted from their high of $9.40 to a staggering low of $0.55, marking a heart-stopping 94.1% drop in mere hours. The trading volume soared as panic set in, resulting in over 34 million shares exchanging hands in one day—five times the ordinary trading volume. By August 2025, shares deteriorated further to around $0.08, a colossal 99.1% fall from the short-lived peak.

Conclusion

The OST fraud case serves as a stark reminder of how vulnerable investors can be in the face of coordinated efforts to mislead and defraud. As highlighted by Joseph E. Levi, Esq. from SueWallSt, the timely disclosure of key developments is essential for maintaining trust in financial markets. Those who invested in OST securities between May 11 and June 26, 2025, are encouraged to reach out to seek recovery of their losses as the deadline approaches on April 17, 2026. With rigorous scrutiny now cast upon the practices of OST, it becomes imperative that the truth emerges, fostering accountability for those involved in this staggering financial debacle.