Overstock Founder Patrick Byrne says the SEC has always turned a blind eye when it comes to predatorial practices in the stock market.
AMC and GME stock have both seen an incredible amount of naked shorting, but regulators have failed to enforce market makers and hedge funds from closing their overleveraged short positions.
The Overstock Founder has an extensive history of fighting for a fair market and explains why the SEC has always turned a blind eye.
I’m going to breakdown key highlights to this incredible interview and embed the video for your viewing pleasure at the end of the article.
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Who is Patrick Byrne?
Now, if you are not familiar with who Patrick Byrne is, he’s the founder of Overstock.com, an online retail company.
Patrick Byrne has a history of exposing injustices in the market after Overstock experienced an incredible amount of shorting.
His activism and knowledge in the markets grabbed the attention of Chinese economists.
The Chinese have adopted Patrick’s principles and knowledge on how to properly build and run an efficient market that eliminates systemic risk to the country.
He has been under several investigations by the SEC due to exposing the corruption no one is willing to change.
“Since the 90’s, they’ve always turned a blind eye to penny stocks in the market.”Overstock Founder, Patrick Byrne
How deep are hedge funds in AMC and GameStop?
According to the Overstock founder, he describes short sellers as having their foot on top of a bouncing betty.
Meaning as soon as they take their foot off, a massive explosive is triggered.
The expression denotes the particular circumstances hedge funds and market makers are currently in.
Hedge fund industry expert, Charles Gradante has recently stated that market makers created naked shares to refrain AMC and GameStop from further causing hedge funds great distress.
Now, Patrick Byrne confirms hedge funds and market makers will do anything to get out of this sticky situation.
Including using the media to attack AMC and GameStop, and even buy regulators in the SEC to allow the market manipulation to continue.
According to the Overstock founder, the only way out of that bouncing betty is to drive the stock’s price to 0.
Something retail investors are not allowing to happen.
Overstock Founder says the SEC, DTCC, and Fed are all corrupt
In this incredible interview, Patrick depicts all regulators as a stack of turtles (I’ll embed the video below).
They’re all corrupt, all the way down, no matter the branch.
He’s heard Gary Gensler is not one of the ‘corrupt ones’; but although intelligent, might not know how to fix the problem.
Retail investors have been raising awareness of market injustices in hopes to receive acknowledgement from Gary Gensler.
However, the SEC Chairman has failed to take matters seriously.
What will trigger AMC and GameStop to squeeze?
If short sellers are doing everything in their power to drive AMC’s and GameStop’s prices to 0, then retail truly is the only solution.
Buying and holding the stock is what’s keeping AMC and GameStop from going to 0.
If hedge funds drive these two stocks’ price down to 0, they win, and the bouncy betty is disassembled.
And the only way they can accomplish this is if retail investors call it quits.
So, we know that as long as retail investors continue to buy and hold the stock, hedge funds cannot drive the price down to 0.
What is the solution?
Every day, every week, and every month that hedge funds have not closed their positions, they lose money.
While retail investors accrue unrealized losses, hedge funds and market makers pay a fee to keep to their short positions open.
The time of desperation is already here.
The markets are getting liquidated, mainstream media continues to spread FUD about AMC and GameStop, and retail investors are not leaving.
You’ve already won if you’re holding either stock, you are the bouncing betty.
These multibillion-dollar companies are working together to scare you out of your money first.
They’re doing this by continuously overleveraging their positions and driving the share price down in hopes that retail will sell, and they’ll take the companies down to 0.
Be sure to watch this incredible interview on Overstock founder Patrick Byrne.
Exposing manipulation in the markets
It’s going to take more than just time to trigger a short squeeze.
A short squeeze is going to require the community to demand proper market structure.
Patrick talks about T-Zero and blockchain technology as solutions that would eliminate naked shorting and the suppression of a stock’s share price in the market.
But the SEC considers the Overstock founder’s idea as market manipulation.
The retail community will not squeeze shorts from their positions unless proper market structure is demanded.
Short sellers will need their foot off the bouncing betty for AMC and GameStop to squeeze.
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