Pressure is building on US regulators as DRS Trimbath further explains naked selling and FTD on Utube with wsb poster ‘atobitt’.
Naked shorting is an illegal practice in the US however until the magnitude of the problem was highlighted by Reddits community WSB, regulators have largely ignored the problem. Not for much longer as over 250,000 retail ‘ape’ investors up the anti.
It is likely that Hedge Funds who participate in this illegal practice will scramble to cover their positions in a multiple of shorted stocks , pushing those stocks to extremely high levels as they attempt to avoid prosection andor bankruptcy. In some cases due to the magnitude of their naked shorting, some HFs will be unable to source sufficient shares and will effectively be ‘hung out to dry’.
Its a game involving dozens if not hundreds of stocks that is slowly unfolding. This may well explain why many of our stocks here are defying logic in a bull market.
There is no way out for those HFs who havenaked sold stocks unless we as investors sell them our shares.. mostly when HFs drive the share prices down, we panic and then sell them our shares enabling them, in part, to cover their illegal practices.
We are all investing forvdifferent reasons however i would urge everyone to carefully consider the reasons and justifications in sellingour investments simply because someone is likely manipulating our stocks to encourage us to sell.
I always remember being taught, you hdo not have a loss until you sell....
I wont be selling
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