Is Trump Media (DJT) being naked shorted?
Yes, it is. Patrick Byrne is secretly giving Trump and Devin Nunes advice on how to battle the naked short sellers and create a short squeeze.
Yes, DJT is overvalued and shouldn't be trading where it is, but just because people are buying DJT to support Trump and indirectly donate to him in a way that gets around campaign finance rules... doesn't give firms like Citadel the right to allow for FTDs.
There is so much money to be made by lending out the hard to borrow shares of DJT that firms like Citadel allow the FTDs to happen and earn massive fees on phantom shares essentially creating counterfeit stock.
Investors who own DJT should tell their brokers not to allow their shares to be loaned out in any way. By keeping them in a cash account instead of a margin account this will make them less likely to be loaned out, but some corrupt brokers will illegally loan out shares in a cash account anyway.
Many U.S. companies were listed years ago on the Berlin Stock Exchange without asking to be listed because it would allow brokers to justify their FTDs. They would say the shares are coming from Berlin and will take a few weeks to arrive meanwhile there would be phantom shares being sold that don't actually exist.
If you talk to Eric Sprott it is happening in the Canadian markets too and they should reinstate the uptick rule where TSX/TSXV/CSE stocks can only be shorted on an uptick, and this will help limit these abusive practices.