A popular financial newsletter is accusing Roblox of allowing large-scale child sexual exploitation and inappropriate content on its platform, drawing on years of media reports. The allegations are detailed on The Bear Cave, a short selling newsletter — but Roblox says The Bear Cave’s founder is highlighting rare instances of abuse to profit by making the service look bad.

“This article contains misleading, irresponsible and in many cases false accusations about Roblox to further the…