** Shares of Red Cat Holdings RCAT.O down 8% to $10

** Kerrisdale Capital says it has taken a short position in RCAT

** Investment firm adds that the drone technology firm has been "misleading investors about its manufacturing capacity for years"

** RCAT's declarations and projections rarely materialize, and believe the same will be true of both its 2025 guidance and the parameters of a US Army short range reconnaissance contract - Kerrisdale

** "Having set almost impossible expectations, Red Cat is set to be blown out of the sky" - Kerrisdale

(Reporting by Juby Anna Babu in Mexico City)

((Juby.Babu@thomsonreuters.com;))