It’s Wednesday and the Calico Critter TikTok controversy isn’t over just yet. According to experts, Sylvanian Drama could still have a chance to continue ruining your childhood.

Today’s News

MONEY MOVES

Ironmouse is leaving VShojo—and says the agency failed to deliver a $500K donation

The allegations: Streamers are leaving talent management agency VShojo amid serious allegations from Ironmouse. In a July 21 video, the top VTuber announced that she “will no longer be a part of VShojo” after learning that both she and the Immune Deficiency Foundation are (allegedly) “owed a significant amount of funds” from the company.

Over $500,000 of that money would have been earmarked for donation as part of Ironmouse’s record-setting subathon in October 2024, which saw her active subscriber count shoot up to over 321,000. The creator had promised to give half her subathon earnings to the Immune Deficiency Foundation after Twitch took its cut—but it’s been almost a year, and Ironmouse says the nonprofit is still “owed over half a million dollars from VShojo.”

The response: Other VTubers have come forward with similar (albeit less specific) allegations in the wake of Ironmouse’s video. GEEGA, who left VShojo last month, noted that “there have been a lot of things that have gone on in the background that I have been completely unable to talk about…So finally someone who is able to say those things has said them, and it’s good.”

Zentreya, who also departed the agency in July, similarly told fans that “I can’t disclose info at this time but…am angry,” while creator Kson claimed that her payments from VShojo stopped way back in September 2024 and confirmed her intention to exit. Projekt Melody, another of VShojo’s top English-language creators, said she also plans to leave.

So far, all English-language VShojo streamers have removed the company’s name from their X bios and usernames. Some VTubers have also called for VShojo to make a public statement. It hasn’t, nor did it respond to our request for comment.

HEADLINES IN BRIEF 📰

• This year, the song of the summer is a short-form TikTok trend—because nothing beats a Jet2holiday. (Tubefilter)
  
  

• Meta has reportedly shut down a bonus program that offered some creators financial incentives for posting on Threads. (Engadget)
  
  

• As employees brace for mid-year performance reviews, TikTok has reportedly urged managers to ignore any instinct “to avoid conflict” while scoring workers. (Business Insider)
  
  

• Beloved TikTok star and WWII veteran Jake Larson has passed away at the age of 102. (The New York Times)

THE BIZ

After a 42% year-over-year sales decline, is PRIME out of its prime?

The spiral: In 2023, Bloomberg reported that Prime Hydration was set to do $1.2 billion in sales during its first year of operation. Born out of a boxing rivalry and buffeted by headline-grabbing drama, Logan Paul and KSI‘s beverage brand thrived on an initial wave of viral marketing.

Electric blue NASCAR vehicles, Los Angeles Laker slam dunks, and Super Bowl commercials all contributed to Prime’s first-year success—but it wasn’t long before the beverage company’s founders began struggling to turn that boom-or-bust momentum into a long-term business strategy. Scrutiny from the FDA over Prime’s combination of potent ingredients and kid-friendly marketing didn’t help. Neither did claims about the “harmful chemicals” in Prime bottles or lawsuits related to alleged breaches of contract.

Fast forward to 2025, and Prime is facing some concerning stats. According to Circana Food data cited by business journalist Darren Rovell, Prime sales are down 42% year-over-year. Some other outlets have recently claimed that Prime’s year-over-year decline could be as steep as 90%.

The future: If KSI and Paul hope to save Prime from that apparent downward spiral, they may need to reformulate their beverage—and take notes from MrBeast.

The biggest YouTube creator’s first foray into consumable products, MBeast Burger, similarly saw its bold marketing strategy marred by controversy (including everything from behind-the-scenes disputes to questionable quality). Since then, however, MrBeast has built a fully-organized business behind his snack brand Feastables and even reformulated the flavor after consumer taste tests didn’t meet expectations. The strategy seems to be working.

IN THE NEWS

The Washington Post made Dave Jorgenson a TikTok star. Now, he’s going solo.

The context: The Washington Post‘s social video presence initially grew in the late 2010s on platforms like YouTube and Twitch—and by the early 2020s, it had absolutely blown up on TikTok. The publication has since turned several of its reporters into FYP mainstays. But amid a tumultuous political climate, some of those voices are now going solo in search of editorial freedom.

Dave Jorgenson is one of them. WaPo‘s 1.9 million TikTok followers will recognize the journalist from pithy, short-form updates that blend traditional reporting with Gen Z-friendly editing techniques. Other social media enthusiasts may know him from his book, Make a TikTok Every Day, which is replete with creator-friendly prompts.

The venture: Now, fans will have a chance to follow Jorgenson into the next phase of his career—because he’s becoming independent through a new venture called Local News International. Former WaPo Director of Video Micah Gelman and deputy Lauren Saks are also coming aboard, as Jorgenson revealed in a recent video:

With LNI, Jorgenson will continue to share top stories through unconventional means. He’ll release five short-form videos per week, one long-form video per month, and periodical newsletter updates.

100,000 YouTube subscribers have already shown an interest in that content, so Jorgenson can expect to reach a strong viewership base early on. The LNI co-founder is also lucky to re-enter the media landscape as an independent personality at a time when money is increasingly flowing into the newsletter biz through platforms like Substack and beehiiv.

WATCH THIS

No CEO is safe in the age of social media marketing

The marketing frenzy: If you’ve been indulging in the schadenfreude surrounding the recent Astronomer CEO scandal…well, you’re not alone. Dozens of social media-savvy brands have seized upon the now-infamous Coldplay kiss cam moment in the hopes of reaching viewers mesmerized by the drama.

Those consumers might never look at Ikea plushies the same way, but at least they know Portland International Airport is the place to go for travelers looking to avoid any pesky jumbotrons.

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Today's newsletter is from: Emily Burton, Drew Baldwin, Sam Gutelle, and Josh Cohen.