AI-Generated Fake Video Causes Stock Collapse and Reputational Harm to Dongpeng Beverage
A social media practitioner used AI tools to create a fake video falsely claiming that Dongpeng Beverage founder Lin Muqin does not drink his own product. The fabricated content spread widely online, damaging the company's reputation and causing its stock price to collapse by approximately 7 billion yuan in market value before police detained the perpetrator.
What happened
A 39-year-old social media practitioner surnamed Luo used an AI tool to create false information and spread rumors claiming that Dongpeng Beverage founder Lin Muqin does not drink his own brand's product. The fabricated video showed someone offering Lin a bottle of Dongpeng Special Energy Drink, which he allegedly rejected saying he drinks something else.
Luo created and disseminated this content to gain attention, drive traffic, and profit. The false information and video spread widely on the internet and caused severe negative social impact.
Reported impact
The rumors triggered widespread online discussion, with consumers expressing concern that the company founder lacked confidence in his own product. The false video caused Dongpeng Beverage's stock price to decline sharply, with the A-share price falling from a June 2025 high of 256.86 yuan to 110.9 yuan by June 26, 2026, destroying approximately 7 billion yuan in market value.
The company's reputation was damaged by misleading information to consumers and investors. The company issued a statement denying the video, stating it was completely fabricated with no factual basis, and filed a police report.
Index analysis
The incident represents malicious use of AI technology to generate synthetic media content for financial gain and to manipulate market perception. The perpetrator intentionally created false audio-visual content to damage a publicly traded company's reputation and share price.
Governance controls
The Shenzhen Public Security Bureau Nanshan Branch initiated a criminal investigation upon Dongpeng Beverage's police report and traced the source of the fabricated content. Luo was criminally detained on June 29, 2026, and the case remained under further investigation.
Dongpeng Beverage released a public statement denying the allegations, stating it had collected evidence and reported the matter to police, committing to pursue legal accountability against responsible parties.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.