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Investors pulled the plug Wednesday on shares of Monolithic Power (MPWR - Get Report) after an attack by a noted short-seller raised questions about the semiconductor company's business practices.

Monolithic's stock price declined 5.01% to $134.70 a share after Spruce Point Capital released a report arguing the company faces downside risk of $21 to $35 a share.

Spruce Point contends that Monolithic is effectively a "foreign company" despite being headquartered in Kirkland, Wash., with "90% of its production and 58% of its sales reported in China."

The report also alleged potential problems with Monolithic's accounting practices, including "irreconcilable differences between MPWR's consolidated filings and its Chinese tax documents."

Monolithic, which produces power circuits for a range of applications from cloud computing to automatic and industrial systems, couldn't be reached immediately for comment.