Quantum BioPharma: Advancing Biotech Innovation Amid Market Manipulation Allegations

Quantum BioPharma Ltd. (NASDAQ: QNTM, CSE: QNTM, FRA: 0K91), formerly known as FSD Pharma Inc., is a Toronto-based biopharmaceutical company focused on developing innovative therapies for neurodegenerative, metabolic, and alcohol misuse disorders. With a robust pipeline, including its lead candidate Lucid-MS for multiple sclerosis and the alcohol detoxification beverage unbuzzd™, the company has made significant strides in 2024 and early 2025. However, Quantum BioPharma has also been vocal about alleged market manipulation, a topic amplified by financial commentator Kevin Malone on X, raising questions about short seller activity and its impact on the company’s stock.

Recent Progress and Press Releases

Quantum BioPharma’s recent press releases highlight its commitment to advancing its clinical pipeline and strengthening its financial position. In March 2025, the company announced the completion of a Phase 1 multiple ascending dose clinical trial for Lucid-MS (Lucid-21-302), a patented compound designed to prevent and reverse myelin degradation, the underlying mechanism of multiple sclerosis. The trial, described as a “first-in-class” study, showed no safety concerns, paving the way for potential Phase 2 efficacy trials. This milestone underscores Quantum’s focus on addressing unmet needs in the $23 billion multiple sclerosis market.

In parallel, Quantum BioPharma’s licensee, Celly Nutrition Corp., has expanded the reach of unbuzzd™, a science-backed beverage aimed at accelerating alcohol metabolism and reducing hangover symptoms. In April 2025, Celly Nutrition announced a partnership with the Asian American Trade Associations Council (AATAC) to broaden unbuzzd™’s retail availability, following its launch in Puerto Rico. Quantum retains a 25.71% stake in Celly Nutrition and is entitled to 7% royalties on unbuzzd™ sales until payments reach $250 million, after which royalties drop to 3% in perpetuity. The company also completed a double-blinded, placebo-controlled clinical trial for unbuzzd™, reinforcing its evidence-based approach.

Financially, Quantum BioPharma reported strong improvements in its 2024 year-end statements, released in March 2025. The company eliminated material uncertainty related to going concern, with cash and cash equivalents at $12.1 million USD as of December 31, 2024, up from $11.1 million the prior year. Operating expenses dropped by over 32% to $16.1 million USD, reflecting enhanced efficiency. Additionally, Quantum diversified its treasury by purchasing $1 million in Bitcoin and other cryptocurrencies, signaling a forward-thinking approach to asset management.

The company also closed a $5 million financing round in March 2025, with proceeds earmarked for ongoing business development and general working capital. This followed a $500,000 first tranche in December 2024, demonstrating Quantum’s ability to secure funding amid a challenging biotech market.

Allegations of Market Manipulation and Short Seller Activity

Quantum BioPharma has not shied away from addressing perceived threats to its shareholder value. In October 2024, the company filed a U.S. federal lawsuit against CIBC World Markets, RBC Dominion Securities, and others, alleging a multi-year market manipulation scheme involving “spoofing” to artificially depress its stock price. The lawsuit, supported by law firms Christian Attar and Freedman Normand Friedland LLP, claims substantial damages to Quantum and its investors. Notably, the legal teams are working on a contingency basis, minimizing financial strain on the company. Quantum’s CEO, Zeeshan Saeed, emphasized the company’s commitment to seeking justice, stating, “We will use all means available to us to get justice for our shareholders.”

In November 2024, Quantum invited shareholders to join its efforts by sharing details of losses incurred during the alleged manipulation period, suggesting that a collective response could strengthen the case. The company believes that short sellers and certain financial institutions have unfairly targeted its stock, a sentiment echoed in posts on X by Kevin Malone, CEO of Malone Wealth.

Malone, a vocal critic of market manipulation, has discussed Quantum BioPharma’s situation in the context of broader short seller activity. In a March 28, 2025, podcast with Saeed, hosted on YouTube, Malone explored the mechanics of alleged stock price suppression, drawing attention to Quantum’s claims. On X, Malone and others have highlighted Quantum’s appointment of Terry Lynch, a known advocate against naked short selling, to its board of directors in March 2025, interpreting it as a strategic move to combat market distortions. These posts reflect a growing sentiment among some retail investors that Quantum’s stock (QNTM) has been unfairly targeted, though specific data on short interest remains limited in public filings.

Navigating Challenges in a Competitive Landscape

Quantum BioPharma operates in a high-stakes biotech sector where innovation is tempered by market volatility and investor skepticism. The company’s dual focus on neurodegenerative therapies and consumer health products like unbuzzd™ positions it uniquely, but also exposes it to diverse risks. Its strategic investments, including loans secured by property through its subsidiary FSD Strategic Investments Inc., provide additional financial flexibility, while a C$130 million tax loss carryforward could offset future tax obligations.

However, the allegations of market manipulation highlight a broader challenge for small-cap biotech firms. Short selling, when conducted lawfully, is a legitimate market mechanism, but Quantum’s lawsuit suggests practices like spoofing—placing and canceling large orders to mislead traders—may have distorted its stock’s true value. While the lawsuit’s outcome remains uncertain, it has galvanized attention, as seen in X discussions and Malone’s commentary, which frame Quantum as a case study in the fight against predatory trading practices.

Looking Ahead

Quantum BioPharma stands at a pivotal moment. Its clinical advancements, particularly with Lucid-MS, signal potential breakthroughs in treating debilitating diseases, while unbuzzd™ taps into a growing wellness market. Financially, the company appears stable, with a clear path to sustain operations through at least January 2027. Yet, its battle against alleged market manipulation underscores the complexities of operating as a publicly traded biotech.

As Quantum pursues its legal and scientific objectives, the biotech community and investors alike will watch closely. Posts on X, including those referencing Malone’s insights, suggest a groundswell of support among retail shareholders, but the resolution of Quantum’s claims—and the trajectory of its stock—will depend on both courtroom developments and clinical outcomes. For now, Quantum BioPharma remains a company to watch, balancing innovation with resilience in a turbulent market.

Sources: Information compiled from Quantum BioPharma’s official press releases, financial filings, and posts on X discussing Kevin Malone’s commentary. Specific web citations include,,,,,,,,,, and X post.

Note: Claims about short seller activity and market manipulation are based on Quantum BioPharma’s allegations and public discussions on X. They remain unproven and are subject to ongoing legal proceedings. Always conduct independent research before making investment decisions.