Cycurion Responds to Coordinated Stock Attack While Strengthening Core Business

News Market Reaction – CYCU

+12.34%

8 alerts

+12.34% News Effect

+28.8% Peak in 23 hr 30 min

+$916K Valuation Impact

$8.34M Market Cap

0.1x Rel. Volume

On the day this news was published, CYCU gained 12.34%, reflecting a significant positive market reaction. Argus tracked a peak move of +28.8% during that session. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $916K to the company's valuation, bringing the market cap to $8.34M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Intraday drop: more than 10% Short volume spike: 33–180 times Spoofing cancellations: 100% cancellation rate +5 more

8 metrics

Intraday drop more than 10% CYCU fell over 10% from prior close at 9:30:01 AM on March 16, 2026

Short volume spike 33–180 times Short selling increases ranged from 33x to over 180x normal daily volume

Spoofing cancellations 100% cancellation rate Hundreds of CYCU orders by a third party on March 16 with full cancellation

Genius Group damages $250 million Minimum damages sought in Genius Group spoofing-related class action

Quantum BioPharma damages $700 million Damages sought in Quantum BioPharma spoofing lawsuit

CYCU claimed damages over $30 million Cycurion’s estimated damages from alleged coordinated campaign

Net debt reduction over 70% Company states net debt reduced by more than 70%

Mullen alleged issuance 5 billion shares Mullen Automotive claims spoofing led to issuing about 5 billion shares

Peers on Argus

CYCU was up 1.11% while close peers showed mixed moves (e.g., SAIH up 6.67%, JDZ...

CYCU was up 1.11% while close peers showed mixed moves (e.g., SAIH up 6.67%, JDZG down 17.76%, DTST down 7.12%), supporting a stock-specific narrative rather than a broad sector rotation.

Historical Context

5 past events · Latest: Jun 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jun 09	Secuvant deal closing	Positive	-4.9%	Completed Secuvant reverse-merger acquisition and detailed structure and earn-out terms.
May 28	CFO transition	Neutral	+1.9%	Announced CFO change with outgoing CFO shifting to strategic advisory role.
May 22	Secuvant acquisition plan	Positive	+12.1%	Agreed to acquire Secuvant to expand MDR, threat management, and AI capabilities.
May 20	Halo Privacy acquisition	Positive	+7.1%	Announced Halo Privacy acquisition and HavenX integration for government-grade security.
May 14	Q1 2026 earnings	Positive	+0.8%	Reported Q1 revenue, margin expansion, reduced losses, and sizable contracted backlog.

Pattern Detected

Recent strategic and earnings news has more often seen share price gains, with only the Secuvant closing announcement showing a negative reaction despite positive operational framing.

Recent Company History

Over the last month, Cycurion reported Q1 2026 results on May 14 with improving margins, reduced losses, and a contracted backlog of $112 million. It then announced acquisitions of Halo Privacy and HavenX on May 20, and Secuvant on May 22, highlighting added AI-driven capabilities and expected revenue and EBITDA contributions. The Secuvant transaction closed via reverse merger on June 2 with total consideration around $2.875 million. A CFO transition was disclosed on May 28. Today’s letter addresses alleged stock manipulation while reiterating balance sheet strengthening and integration of these deals.

Regulatory & Risk Context

Short Interest: 12.89%

Short Interest

12.89% of float

0% 15% 30%+

moderate as of 2026-05-29 Days to cover: 1

Market Pulse Summary

The stock surged +12.3% in the session following this news. A strong positive reaction aligns with m...

Analysis

The stock surged +12.3% in the session following this news. A strong positive reaction aligns with management’s emphasis on improved fundamentals, including net debt reduced by over 70% and acquisitions intended to expand AI-driven cybersecurity capabilities. Historical news often saw aligned price gains, with several May 2026 announcements followed by positive moves. However, previous financing structures detailed in SEC filings and alleged prior trading pressures underscore ongoing dilution and volatility risks that could limit follow-through if sentiment shifts.

Key Terms

short sale circuit breaker, spoofing, dodd-frank act, finra rule 5210, +4 more

8 terms

short sale circuit breaker regulatory

"The Short Sale Circuit Breaker triggered immediately as the market opened."

A short sale circuit breaker is an automatic rule that temporarily blocks or restricts short selling of a stock when its price falls sharply, acting like an emergency brake to slow down further declines. Investors care because it can reduce rapid, panic-driven price drops and give the market time to absorb news, but it can also limit strategies that profit from or hedge against falling prices.

spoofing financial

"This pattern constitutes unlawful spoofing under the Dodd-Frank Act and FINRA Rule 5210"

Placing fake buy or sell orders with the intent to trick other market participants and then canceling them before execution; the goal is to create a false impression of demand or supply and move a security’s price. Think of it like pretending to bid at a yard sale to make an item seem more desirable, then backing out — it can mislead investors, distort prices and trading volume, and lead to regulatory enforcement and financial losses.

dodd-frank act regulatory

"This pattern constitutes unlawful spoofing under the Dodd-Frank Act and FINRA Rule 5210"

A U.S. law that created a set of rules and oversight for banks, financial firms, and certain markets to reduce risky behavior and protect consumers. Think of it as a referee and rulebook for the financial system: it imposes disclosure, capital and reporting requirements and oversight that can change how banks lend, trade and manage risk, which in turn affects investment returns, borrowing costs and overall market stability.

finra rule 5210 regulatory

"This pattern constitutes unlawful spoofing under the Dodd-Frank Act and FINRA Rule 5210"

FINRA Rule 5210 is a regulatory rule that governs how broker-dealers may publish or distribute reports of transactions and price quotations for securities, prohibiting the creation or dissemination of false, misleading or artificially generated trading activity. It matters to investors because it helps prevent market manipulation by ensuring published trade and quote information is genuine and not used to create a misleading impression of demand or price movement, preserving trust in quoted prices and reported volume.

naked short sellers financial

"Datavault AI filed a federal lawsuit against "John Doe" naked short sellers"

Naked short sellers are traders who try to profit by selling shares they have not borrowed and may not be able to deliver at settlement, like promising to sell a house you don’t own or have a key to. This practice often leads to failed trades, can push a stock’s price down artificially, and is widely restricted or illegal because it increases risk and uncertainty for regular investors and markets.

painting the tape financial

"alleging securities fraud, spoofing, layering, painting the tape, and defamation"

Painting the tape is the practice of placing a series of trades or orders to create the appearance of active buying or selling and manipulate a stock’s price or volume. Like arranging a fake crowd to make a shop look popular, it can mislead other investors about demand and push prices away from their true value, increasing the risk of poor decisions and regulatory enforcement.

civil rico regulatory

"That case anticipates adding Civil RICO allegations once defendants are identified"

A civil RICO claim is a private lawsuit that lets investors or other parties sue a company or individuals for a sustained pattern of illegal conduct—such as fraud, bribery, extortion or other coordinated wrongdoing—that harms a business or its creditors. It matters to investors because a successful civil RICO case can bring large monetary awards, court orders to stop harmful activity, and serious reputational damage; think of it as a legal tool to unwind a long-running scheme and recover losses, like pulling a thread that unravels a damaged sweater and exposes underlying problems.

market makers financial

"we have obtained records from multiple registered market makers covering trading activity"

Market makers are firms or traders who always stand ready to buy and sell a stock by posting continuous bid and ask prices, acting like a store that both sells and buys the same product so customers can trade anytime. They matter to investors because they keep trades flowing and determine the bid-ask spread — which affects how quickly orders execute and how much investors pay or receive when buying or selling shares.

AI-generated analysis. Not financial advice.

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MCLEAN, Va., June 15, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (NASDAQ: CYCU) (“Cycurion” or the “Company”), a leading AI driven, tech-enabled cybersecurity solutions provider, today releases the following Letter to Shareholders from Kevin Kelly, Chairman and Chief Executive Officer.

Dear Valued Cycurion Shareholders,

I want to share with you some of our current challenges and successes. The past several months have been particularly challenging. We have encountered a highly coordinated adversarial campaign aimed squarely at our company’s stock prices and we are taking active measures to put a halt to that activity and to recover our damages.

What the Evidence Shows

On March 16, 2026, an unauthorized and fabricated press release was distributed through ACCESS Newswire falsely announcing a massive fictitious acquisition by Cycurion. What followed was a coordinated manipulation of Cycurion’s stock prices, and we have obtained the trading records via subpoenas.

Through our lawsuit, which names ACCESS as a defendant and will eventually include the market manipulators, we have obtained records from multiple registered market makers covering trading activity in CYCU.

1. The Short Sale Circuit Breaker triggered immediately as the market opened. At 9:30:01 AM on March 16 — before most investors could take any action — CYCU had already fallen more than 10% from the prior close. This does not happen by accident.
2. Short selling spiked at extraordinary multiples of normal volume. Compared to pre-event daily averages, increases ranged from 33 times to over 180 times above normal daily volume in CYCU. These were pre-positioned, coordinated attacks.
3. Spoofing activity was identified. Records from one market maker show that a third party placed hundreds of orders in CYCU on March 16 with a 100% cancellation rate, executed at nanosecond speeds. This pattern constitutes unlawful spoofing under the Dodd-Frank Act and FINRA Rule 5210 — placing orders with no intent to execute, solely to create artificial price pressure and mislead other market participants. As FINRA itself has stated, spoofing is an insidious form of market manipulation that undermines the transparency and integrity of the markets by distorting the true nature of supply and demand.
   
   

We Are Not Alone — This Is a Known and Prosecuted Pattern

We want shareholders to understand that what happened to CYCU is not an isolated phenomenon. Courts, regulators, and fellow public companies have been confronting this exact playbook with increasing frequency — and the damages being pursued in these cases illustrate the serious financial harm this conduct causes:

• In November 2025, Genius Group filed a federal class action lawsuit in the Southern District of New York alleging that two major market makers engaged in a scheme spanning at least three years — placing thousands of spoofing trades designed to create false impressions of supply and excess volatility — to artificially deflate the company's stock price and induce shareholders to sell at manipulated prices. That lawsuit seeks a minimum of $250 million in damages.
• In July 2025, Datavault AI filed a federal lawsuit against "John Doe" naked short sellers alleging securities fraud, spoofing, layering, painting the tape, and defamation — including the deliberate publication of false and misleading information on social media platforms designed to create panic among investors. That case anticipates adding Civil RICO allegations once defendants are identified, with damages expected to be substantial.
• In March 2025, a federal judge denied a motion to dismiss in Mullen Automotive's lawsuit against multiple broker-dealers, finding the company's claims adequately pled and allowing the case to proceed to full discovery. Mullen alleges that spoofing caused the issuance of approximately 5 billion shares at artificially deflated prices.
• Quantum BioPharma filed a federal lawsuit alleging that major financial institutions used spoofing techniques to manipulate its share price hundreds of times over a multi-year period. That lawsuit seeks damages in excess of $700 million.
• The SEC, in its Fiscal Year 2025 enforcement report, identified spoofing as among the abusive trading practices it pursued, bringing an action against a trader for a manipulative spoofing scheme, and listed market integrity — including spoofing — among its core enforcement priorities.
  
  

What We Are Doing About It

We are actively investigating financial institutions and other parties who engaged in these activities. We have issued litigation hold letters and compiled trading evidence. We believe damages from this coordinated campaign could exceed $30 million.

The Company Underneath

Despite the external attack on our stock, we continue to build a fundamentally stronger company:

• We have reduced net debt by over 70% while maintaining solid cash reserves.
• We have implemented disciplined cost controls focused on profitable revenue.
• Our acquisitions of Secuvant and Digital Ally's Video Solutions segment are integrating and expanding our AI-powered ARx platform.
• Significant contract wins, combined with these acquisitions, position us to more than double our company's run-rate revenue while improving margins.
  
  

The share price has been battered — I acknowledge that. But the trading evidence makes clear that this reflects a coordinated external attack, not our operational fundamentals. We are not alone in facing this — other public companies have fought back and succeeded in court. We intend to do the same.

We have a stronger balance sheet, a more robust solution portfolio, and a growing position in the cybersecurity and public safety markets. We are fighting back — legally, factually, and with documented proof. And we are doing so while continuing to run and grow this company.

Thank you for your continued support and patience. I look forward to providing further updates as our litigation and operational progress develops.

Sincerely,
L. Kevin Kelly
Chairman and Chief Executive Officer

About Cycurion, Inc.

Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future. More info: www.cycurion.com.

Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion's business.

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Such statements include, but are not limited to, statements regarding the Company's pursuit of litigation and recovery of damages arising from the alleged manipulation of its securities, including its claims against ACCESS Newswire and any market participants subsequently identified; the anticipated outcomes of the Company's investigations and legal proceedings; the integration of the Company's acquisitions of Secuvant and the Kustom Entertainment video solutions business and their expected contribution to the Company's ARx platform; the Company's expectations regarding net debt reduction, cost controls, cash reserves, and improved margins; the Company's ability to more than double its run-rate revenue; the continued execution of the Company's contracted backlog and significant contract wins; the future performance of the Company's stock; and other statements that are not historical facts, including statements which may be accompanied by words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential," and similar expressions intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Cycurion and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the outcomes of the Company's investigations, any potential legal proceedings, or the future performance of the Company's stock. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Cycurion with the U.S. Securities and Exchange Commission. Cycurion anticipates that subsequent events and developments may cause its plans, intentions, and expectations to change. Cycurion assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Cycurion's plans and expectations as of any subsequent date.

Cycurion Investor Relations:
(888) 341-6680
investors@cycurion.com

Cycurion Media Relations:
(888) 341-6680
media@cycurion.com