Bigger and bigger media outlets are now reporting what we’ve been saying for years now regarding naked shorting in AMC stock.
Business Insider recently published a piece stating that the placement of AMC Entertainment on the threshold list indicates that the stock continues to be heavily shorted on Wall Street and that much of it could be due to the illegal practice of naked short selling.
“Being placed on a threshold list is a strong sign that the stock is being manipulated and could be the target of naked short selling, which is when investors and traders sell a stock short without borrowing or arranging to borrow, the shares to sell short from a broker.”
For years and even in recent months, the retail community has been raising awareness of these predatorial strategies in the market.
$AMC, $APE, $GME, $MULN, $NWBO, $GNS, and many more across the market are experiencing naked short selling to an extent, some more than others.
Business Insider says that while naked short selling is illegal in the U.S., it is a common practice elsewhere in the world, particularly in Asia.
But there’s some false to this statement — on the contrary, Asia is stricter on naked short selling that the United States is.
Regulators in South Korea have strengthened punishment for naked short selling.
Violators may face years in jail and fines are equivalent to the value of sales sold naked, neither of which are implemented in the U.S.
Earlier this year, South Korea’s regulators even fined Citadel for high frequency trading.
China also had the courage to freeze Citadel’s accounts back in 2015 when it caught the Ken Griffin’s hedge fund naked short selling.
The Strong Possibility of a Short Squeeze
The DD is done, retail investors have been saying this for year now.
But Business Insider says this situation could set up AMC stock for what is popularly called the “Mother of All Short Squeezes,” or MOASS.
Interactive Brokers Chief Strategist Steve Sosnik stands behind this massive short squeeze theory too, stating the following:
“Right now we’re seeing such a demand to short AMC partly because of its difficulties but partly because of the special situation.
This really is what they were looking for in some ways as the mother of all short squeezes.
The borrow rate, it costs you 700% to borrow the shares overnight — if you can find them,” said the Interactive Brokers Chief Strategist on Yahoo Finance.
AMC Entertainment (NYSE:AMC) stock is up nearly 40% this year-to-date.
Investors anticipate a new all-time high this year.
Related: 5 Big Signs Point to An AMC Short Squeeze
What Mainstream Media is Missing
Mainstream media may finally be waking up to some of the manipulation we’ve been seeing for years now, but they fail to connect something very important.
Where exactly it’s coming from.
Ken Griffin’s Citadel has been scrutinized for years now but has managed to slide by with very little to no spotlight — that is until retail investors and social media came into the picture.
Citadel has a long history of market manipulation but is glorified by Wall Street media and journalists alike.
During the ‘meme stock’ frenzy of 2021, Citadel was caught on the wrong side of the wave when it had short position on AMC and GameStop — the hedge fund lost billions.
However, ex-Citadel Data Scientist Patrick McConlogue says the halts allowed Citadel stop the game and make additional overleveraged bets towards the downside and capitalize on massive drop.
Average investors were cheated out of their money, creating possibly one of the biggest scandals in Wall Street history.
“The game is not fair and it never has been. Individual investors, even when operating in a swarm, are destined to lose. How do I know? I helped design the game”, says Patrick McConlogue.
You can read Patrick’s full story here.
I’m curious to know your thoughts on what’s happening.
Little by little, bigger media outlets have unveiled what the retail community has been raising awareness about for years now, the naked short selling of AMC stock and many others being a big one.
Do you think there will be justice for how Ken Griffin’s Citadel has taken advantage of the industry and our regulators?
Leave your thoughts below.
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If brokers are losing so much money on AMC shorts then why are the number of AMC short shares rising? If the MOASS were to happen, how many brokers would go bankrupt?
Thank you for all you do, Frank! We know what’s going on and soon the whole world will.
Thank you – and yes, I agree.
Leave your thoughts below!