Shares of Royal Caribbean (RCL) are under pressure after noted short-seller Hindenburg Research announced in a series of tweets that it was shorting the cruise line. 

In a series of tweets, Hindenburg said that RCL was one of the most dislocated “re-opening” stocks on the market today and said that the outlook for the cruise industry "is far more grim than other hospitality and leisure" industries.

Hindenburg pointed out the company's ballooning liabilities and share count, saying the company's current debt would be "extremely difficult to service, almost necessitating extensive dilution of existing shareholders."

The firm also pointed to increased fuel costs, vaccination mandates, and the CDC's Conditional Sailing Order as headwinds.

As far as low hanging fruit for short sellers as part of the post-COVID-19 re-open trade goes, Royal Caribbean may be at the top of the list since it returned 3% in 2021, while Carnival (CCL) and Norwegian Cruise Line Holdings (NCLH) fell 7.1% and 18%, respectively, according to Bloomberg.

The stock traded down more than 3% following the report before recovering some losses.