Shorting in Mullen Automotive (NASDAQ:MULN) stock is now surging as seen by the company’s rising short interest report.
Short interest spontaneously rose to 22.24% (updated daily here) on Thursday after coming down from all-time highs in late June.
The company’s short interest chart depicted below mirrors Mullen’s significant drop in share price as short selling in the company took over.
As short interest has surged, share prices in the EV company have fallen.
MULN stock is down more than 99% in the past year, leaving the company with no other choice than to issue another reverse stock split this year if it is unable to maintain Nasdaq’s $1 bid requirement.
In June, the company introduced a new 1-for-100 (max ratio) reverse stock split in its updated SEC filing.
The company said that it has reason to believe that it has become a target of naked short selling, the illegal practice of short–selling shares that have not been affirmatively determined to exist, but more on that below.
Famous lawyer known for fighting against market injustices Wes Chrisitan says ‘Naked Shorting’ is a worldwide problem.
“Regulators aren’t in tune as much as they should be,” he’s stated.
Wes says that while mainstream media may continue to ridicule those standing against fraud in the market, investors should continue to raise awareness.
Several reports such as this case study provides proof that naked short selling has been acknowledged by the SEC and in the banking industry as a big problem.
MULN Stock: CEO David Michery on Illegal Shorting Activities
Mullen Automotive stated in its latest investigation update that it has now been investigating naked short selling activity in their company since April of this year.
The company announced earlier in July that it has retained Christian Attar, formally known as Christian Levine Law Group, and in partnership with Warshaw, Burstein, LLP, to combat naked short selling activities.
The press release stated that based on reports Mullen has received from ShareIntel, the company believes it may have been the target of a market manipulation scheme involving illegal naked short selling of its common stock and has decided to investigate and expose any potential wrongdoing.
According to various publicly disclosed sources, Christian Attar, formally known as Christine Levine Law Group, in partnership with Warshaw Burstein, LLP, have successfully prosecuted and collected millions of dollars in aggregate damages on behalf of their clients from broker-dealers, market-makers, hedge funds, and asset-based lenders who have engaged in such market manipulation schemes.
“Since our announcement on April 28, we have been actively investigating naked short selling and we now have enough intel to have the law firm actively investigate and, where justified, take action against any market manipulators using naked short selling, spoofing or other illegal acts,” stated David Michery, CEO and chairman of Mullen Automotive, Inc.
In 2023, we’ve seen companies such as Global Tech Industries (GTII), Meta Materials (MMAT), Mullen Automotive (MULN), Genius Group (GNS), and now Hycroft Mining (HYMC) open investigations with findings mainly by ShareIntel’s analysis that determines strong indication of market manipulation and illegal trading activity.
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