Luckin Coffee (LK) has crashed by more than 82% in one day, after the news of the company’s fabricating transactions to inflate sales by as much as $310 million. The company has released SEC filing to describe what the special committee has found out. COO Jian Liu fabricated transactions of around RMB 2.2 billion ($310 million) from second quarter 2019 to fourth quarter 2019. Certain costs and expenses were also inflated significantly during this period. It is certainly not good news for Luckin Coffee’s shareholders and we think there are several investment lessons