Trump Media (DJT) is fighting the naked short sellers just like Power Nickel Inc (TSXV: PNPN) and its CEO Terry Lynch who launched the Save Canadian Mining foundation with the support of Eric Sprott. It is impossible to know how many counterfeit shares of DJT and PNPN are currently sold short and need to cover.
Devin Nunes wrote the following letter today to lawmakers:
I write to inform you of an urgent matter concerning the potential manipulation of the stock of Trump Media & Technology Group Corp. ("TMTG"), which trades on the Nasdaq Stock Exchange under the ticker "DJT."
Since April 2, 2024, DJT has appeared every day on Nasdaq's "Reg SHO threshold list," which is indicative of unlawful trading activity. This is particularly troubling given that "naked" short selling often entails sophisticated market participants profiting at the expense of retail investors. Reports indicate that, as of April 3, 2024, DJT was the single most expensive stock to short in U.S. markets by a significant margin, meaning that brokers have a significant financial incentive to lend non-existent shares.
Furthermore, data made available to us indicate that just four market participants have been responsible for over 60% of the extraordinary volume of DJT shares traded: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.
Overall, we assess there are strong indications of unlawful manipulation of DJT stock. As such, I respectfully request that you open an investigation of anomalous trading of DJT to determine its extent and purpose, and whether any laws including RICO statutes and tax evasion laws were violated, so that the perpetrators of any illegal activity can be held to account.
A thorough and expeditious investigation should include requests for the following records:
Consolidated Audit Trail (CAT) trading data including trading records, quotes, market maker records, and add/drop records, and CAT tables revealing masked fields such as broker aliases;
Financial Industry Regulatory Authority (FINRA) data including brokers' short interest data and Trade Reporting Facility (TRF) data with brokers' market participant identifiers (MPIDs);
Depository Trust and Clearing Corporation (DTCC) information including daily position reports, CNS accounting summaries, participant daily activity statements, universal trade capture data, consolidated trade summaries (M209 records), and correspondent clearing records;
Reports from DTCC member firms reflecting total shares short since February 14, 2024 (including trading under the ticker 'DWAC' prior to March 26, 2024), CAT data for loan/borrow reports, and daily locate and pre-borrow logs.
Such an inquiry is needed to protect shareholders, including TMTG's retail investors. It may also shed light on the need for policy changes such as closing the Reg SHO loophole for market makers, requiring brokers to better document their efforts to locate and borrow stock, and stiffening penalties for illegal naked short sellers.
For your reference, I am attaching an April 18, 2024 letter I sent regarding this matter to Adena Friedman, Chair and CEO of Nasdaq, Inc. The other attached letter, signed by 74 Members of Congress, and relating to a separate incident of possible market manipulation (potentially including naked short selling), suggests that TMTG's experience is not unique.
I am ready and willing to assist your efforts in any way possible.
Sincerely,
Devin Nunes
CEO, Trump Media & Technology Group
Preparing Americans for Hyperinflation
