We are short Treace Medical Concepts Inc (“TMCI”, “Treace”, “the Company”). Treace makes itself out to be an innovative MedTech business “driving a fundamental shift in the surgical treatment of Hallux Valgus” (i.e., bunions) through its triplane Lapidus fusion (i.e., “Lapiplasty”) kits. Our view is that Treace’s primary innovation has not been in any sort of medical advancements, but in aggressive reimbursement practices and deceptive DTC marketing. We view these business drivers as problematic and self-defeating, as insurers appear to have begun placing Lapiplasty procedure reimbursements under scrutiny while customer complaints about misleading claims from Treace are mounting.