Tag: Naked Shorting (Page 1 of 2)

MULN Stock Continues to Drop Despite Positive Developments

Why is MULN Stock Dropping?
Market News Daily: Why is MULN stock dropping?

Mullen Automotive (NASDAQ:MULN) stock continues to fall despite several positive developments happening with the company.

MULN shares fell to $0.10 on Thursday, closing at $0.11.

Prices have slid more than -22% in the past trading week and more than -64% this year-to-date after shares rose in January from $0.32 to $0.44.

Today’s trading marked the company’s new 52-week low.

The latest developments in Mullen Automotive have been very positive for the company, but prices have continued to tumble.

This week, Mullen Automotive received the distribution rights to their K50 Dragonfly EV supercar.

Shares momentarily rose 2.5% before coming back down.

The company won license for IP and exclusive distribution rights in North and South American markets for the Qiantu K50/DragonFLY.

“This agreement with Qiantu is an important milestone for the company, said Mullen’s CEO and Chairman David Michery, adding that “since day one, we have received overwhelming positive feedback for this vehicle, including our original debut at the 2019 New York Auto Show and the Indy 500 in May 2019.

We are excited to start the GT and GTRS programs on March 20, 2023.”

Mullen Automotive will work to re-engineer the product to meet U.S. standards with final assembly in Mishawka, Indiana.

The EV supercar will be rebranded and refreshed to sell under the Mullen GT & GTRS brands with expected performance specs of 0-60 MPH in 1.95 seconds and a top speed over 200 MPH.

Other Positive MULN Stock News

Positive MULN stock news.
Positive MULN stock news.

Just last week, Mullen Automotive confirmed the delivery of 6,000 Class 1 EV cargo vans valued at $200 million by the end of March 2023.

Mullen Automotive CEO David Michery released the official statement on the company’s website — a positive development shareholders have been waiting for since December of 2022.

The company also reported in their statement that as of Feb. 28, 2023, Mullen has $87,400,009 of cash and cash equivalents, including restricted cash, and Mullen expects to receive an additional $110 million from firm commitments by June 1, 2023.

“I believe we have all the pieces in place between our product, factories, and strategic expertise to execute on our plans to deliver our Class 1 and Class 3 vehicles this year,” said David Michery, CEO and chairman of Mullen Automotive.

“Furthermore, we continue to invest and move at a fast clip with the Mullen FIVE program, which will soon be approaching vehicle engineering freeze, allowing us to move into the next phase of the crossover program.”

In December, Mullen Automotive received a $200 million purchase order for 6,000 of its Class 1 EV cargo vans by RMA group.

Randy Marion Automotive Group is one of the largest and most respected commercial vehicle dealer groups in the U.S.

“We see a tremendous opportunity with the Mullen commercial portfolio, and the launch of the commercial van could not come at a better time,” said Randy Marion, CEO and founder of RMA. “There’s significant pent-up customer demand for Mullen to fulfill. I have many customers looking at me to find product for their companies.”

Why is MULN Stock Dropping?

With all of these positive developments in Mullen Automotive, why is MULN stock dropping?

Afterall, investor sentiment remains bullish.

Since the beginning of the year, we’ve seen call options dominate put options in the derivatives market indicating bullish bets.

New retail investors have even flocked to buy shares of the company due to several positive developments in the company.

So, why is MULN stock dropping?

Investors of the company believe Mullen Automotive has become a target of naked short selling, a manipulative strategy that allows market makers and hedge funds to short a stock without actually borrowing the stock from a lender.

Aside from positive news and bullish sentiment among investors, MULN stock has seen a massive increase in FTDs this year, another indication of naked short selling in a stock.

MULN FTDs.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

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Market News Today - Why is MULN stock dropping?
Market News Today – Why is MULN stock dropping?

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AMC Stock: CEO is Tired of Manipulation Talks

Market News Daily: AMC CEO fatigued by manipulation talks.

AMC Entertainment (NYSE:AMC) CEO Adam Aron touches on billions of synthetic shares and market manipulation.

For years now, AMC shareholders have stuck to their convictions on a mother of all short squeezes (MOASS) due to the alarming amount of overleveraged shares out in the market that institutions still have to buy back.

AMC Entertainment stock has been shorted in the past by some of the biggest short sellers on Wall Street, though now they are playing both sides to hedge their bets.

Notorious short seller Citadel has a long history of market manipulation, Chairman Gary Gensler says more than 50% of trading goes through dark pools, and Patrick McConloguge, an ex-Citadel data scientist says the game is rigged and that rules are tailored to benefit hedge funds.

But AMC CEO Adam Aron says that is not the company’s problem, despite thousands of investors urging the company to take an activist role in lifting the suppression that keeps the stock price from rising.

Investors managed to raise AMC shares from $2 to $20, and from $5 to $72 per share — though halts and other forms of suppression limited how high the stock was allowed to go.

Shareholders have felt cheated ever since and have urged AMC’s CEO to take legal action against naked shorts like other CEOs are currently doing.

But AMC’s CEO has recently expressed a strong message towards the manipulation occurring in his company stock.

And quite frankly, the CEO expresses he’s tired of investors talking about it.

Let’s dive right into it.

AMC CEO on Billions of Synthetic Shares

AMC CEO Adam Aron on Synthetic Shares.
AMC CEO Adam Aron on Synthetic Shares.

In August 2022, just moments before the debut of AMC’s Preferred Equity, APE, Adam Aron released the following statement:

“Candidly, I’ve seen no evidence so-called fake or synthetic shares exist. But many of you disagree. This preferred equity dividend goes ONLY to company issued shares. So, it will have the impact of a “share count” or unique dividend many of you have sought.”

This alarmed many investors at the time with a few die-hard followers calling anyone who mentioned this news as ‘bot’, ‘shill’, or ‘fud’ — completely unnecessary of course but it paints the environment well.

Other Twitter influencers promised shareholders APE was the catalyst to an epic short squeeze but failed to explain the equity’s true purpose.

In other words, only a half-truth was being spread within the community which caused shareholders to hold even deeper losses.

A video surfaced on social media of Adam Aron speaking on market manipulation that has many investors somewhat divided — though it shouldn’t.

And I’ll explain why in a moment.

The CEO says, “guys, don’t believe everything you read on Twitter. Yes, it’s true that we have a lot of short sellers who have sold our shares short, but all that stuff that you read about market manipulation, and fail to delivers, and all this other stuff, there’s billions of synthetic shares out there — that’s not our problem.”

Adam Aron said on Twitter the company had reached out to the NYSE and FINRA to look into the high number of FTDs but failed to provide any sort of letter confirming the claims.

Shareholders are confused to say the least with what the CEO had to say during one of his events.

Is the CEO is experiencing fear, uncertainty, and doubt?

In another video, the CEO can be heard telling a shareholder, “You don’t know what you’re talking about. You’re just wrong. You’re just wrong across the board. There are no synthetic shares.”

Despite not being one of the most peppy AMC updates, it sure is something worth raising awareness about.

What the CEO says and what you have seen are going to reinforce your conviction or lack thereof.

However, there are always two sides to a coin.

In the full video, you can also hear the CEO state that essentially running the company fundamentally is more important than the manipulation happening in the company stock.

The clips are rubbing many investors the wrong way but shouldn’t be take completely out of context.

Still, investors feel the CEO should not discuss market injustices if he’s not willing to tackle them.

Why is This Important?

Market News Daily: Adam Aron tired of market manipulation talks.
Market News Daily: Adam Aron tired of market manipulation talks.

There are millions of investors out there who have witnessed the market manipulation single handedly for years and now they’re being told it’s not important — or rather it doesn’t exist, when real data, reports, and whistleblowers have stated otherwise.

Though the CEOs controversial statements might have investors divided, it shouldn’t.

In the end, a shareholder is a shareholder and everyone has a choice to make based on what’s happening in the market and with the company.

Some shareholders are indifferent, simply waiting to collect profits when shorts start closing their positions.

AMC’s short interest is still high at 23.60%.

The short interest was lower when AMC shares ran up to its all-time high of $72 per share in 2021.

Time will tell where AMC’s share price goes from here on out.

What do you make of AMC’s CEO’s thoughts on the manipulation?

Was this the proper way to address shareholders and the community who have been fighting for change in the financial system?

Out of the market injustices that have occurred ever since the ‘meme stock’ frenzy, ‘We The Investors’ has established a legitimate voice for the retail community and has been able to speak to Chairman Gary Gensler on concerns and issues investors are currently facing.

We’ve also been able to raise enough awareness to bring certain issues to light by bigger media outlets, ensuring your voice is heard.

Leave your thoughts below.

Originally published on March 15, 2023.

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Market News Today - AMC CEO Fed Up with Manipulation Talks
Market News Today – AMC CEO tired of Manipulation Talks.

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Regulators Strengthen Punishment for Naked Short Selling

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

(BK) The Securities and Futures Commission of the Financial Services Commission imposed a pecuniary penalty of 6.05 billion won (US$4.58 million) on two securities companies that committed naked short selling.

The Financial Investment Services and Capital Markets Act of South Korea was revised in April 2021 so that illegal short sellers will face pecuniary penalties instead of fines.

The two companies have become the first such case.

Today, naked short selling is illegal in South Korea, unlike covered short selling.

Investors in the United States have raised naked short selling concerns on social media, urging the Securities and Exchange Commission to model the practice of nations such as South Korea.

Previously, illegal short selling in the South Korean stock market was detected infrequently and violators could go almost unpunished.

This is because the maximum fine according to the act before the revision was 100 million won (US$75,694).

According to the amended act, the maximum pecuniary penalty is equal to the amount of illegal short selling.

In addition, violation may lead to at least one year in prison or a fine equivalent to 300 to 500 percent of the illegal profit or avoided loss.

This model is raising attention in the United States as the predatorial practice has dominated the industry for decades.

Naked Short Selling in America

Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

Today, naked short selling in the American markets is given a blind eye.

Retail investors believe U.S. regulators to be complicit in the market injustices that occur on a daily basis.

(Singapore) Genius Group (NYSEAMERICAN:GNS) CEO Roger Hamilton has led CEOs to take legal action against naked short selling in the market.

He recently shared a petition on social media to end naked short selling in efforts to raise awareness of the illegal short selling strategy.

Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist, per Investopedia.

The predatorial practice allows short sellers to short a stock without there actually being any stock available to short.

In 2015, The SEC approved the use of naked short selling on IPOs although it was deemed an illegal practice in 2010.

Roger Hamilton says he noticed something was wrong in his company stock after shares would plummet despite his company having strong fundamentals and funding.

This is when he began to speak publicly about what was happening to his company.

Another public figure who has spoken out against naked short selling is Jon Stewart.

Regulators have always had the power to stop the manipulation happening in our stock market but have created rules that cater primarily to hedge funds.

“The Game is Rigged” Says Ex-Citadel Data Scientist

Patrick McConlogue, an ex-Citadel Data Scientist said during the ‘meme stock’ frenzy that the stock market is rigged, claiming he helped design it.

“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.”

The dilemma here is that institutions are able to get away with the ‘capitalism’ card every time an issue is brought to their attention.

SEC Chairman Gensler has said that the SEC cannot completely interfere with the industry due to a company’s capitalistic rights in America.

Which makes sense through a capitalistic view, however, there should be tougher laws in certain sectors and industries, especially those that have the power to create massive economic downturns.

Regulators in other countries have strengthened the punishment for naked short selling for a reason — the manipulation creates systemic risk.

The question is, how many times will the U.S have to see the collapse of markets and our economy to understand this?

Other countries have recognized these fallacies in their market, maybe it’s time the U.S does the same.

Related: ‘We The Investors’ Challenges Wall Street on New SEC Proposals

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Market News Today - Regulators Strengthen Punishment for Naked Short Selling.
Market News Today – Regulators Strengthen Punishment for Naked Short Selling.

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AMC Failure-to-Delivers Are Skyrocketing Through the Roof

Market News: AMC Failure-to-delivers rise in February.
Market News: AMC Failure-to-delivers rise in February.

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC failure to deliver
AMC FTDs – Stocksera.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Are AMC’s FTDs a result of naked shorting?

Majority of the retail community seems to think so.

Companies are even beginning to take legal action against the predatorial short selling strategy.

GNS CEO Shares Petition to End Naked Shorting

Recently, Genius Group ($GNS) CEO Roger Hamilton shared a petition to end naked shorting in the market.

The Naked Shorts War activist urged the retail community to sign it in efforts to raise awareness of manipulative tactics that occur in the market every day.

“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.

The Board of Directors of Genius Group Limited, a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.

AMC shareholders have criticized AMC CEO Adam Aron for not addressing the manipulation in AMC Entertainment stock.

This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.

Waging war against naked shorts is something that won’t succeed so easily, but raising awareness is a sure way to start.

Related: $GNS, $MMTLP, Taking Regulators and Manipulation Head On

Are All AMC FTDs Caused by Naked Shorts?

SEC Chairman Gary Gensler has said in the past that FTDs aren’t always the result of naked shares — but that’s as much as he’s mentioned the term.

FTDs can also result in buyers not having the funds to cover costs during execution of a security, though for retail investors this is a very unlikely scenario.

The stock market has seen its fair share of manipulation throughout the decades.

Institutions can spoof the market with ‘naked shares’ to move the price without ever having to take accountability for any real asset.

They can also lend shares they don’t own as IOUs and never have to take accountability when it comes to delivering them but rather simply reporting them as failure-to-delivers.

So, there are certainly loopholes our regulators must take into account.

And as far as the retail community is concerned, our regulators know all too well what’s occurring in the market.

Putting pressure on these regulators could be the first steps towards creating real change in the near future.

Retail investors might just be the ones to make history this decade.

Related: The SEC Green-Lighted Naked Shorting of IPOs in 2015

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Market News Today - Is Amazon buying AMC Entertainment?
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AMC Demands FINRA to Look at Skyrocketing FTDs

Market News Daily: AMC Demands FINRA and NYSE Look into Stock.
Market News Daily: AMC Demands FINRA and NYSE Look into Stock.

AMC Entertainment (NYSE:AMC) CEO announced that the company has contacted both FINRA and the NYSE to look closely at the trading of their stock.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

AMC failure-to-delivers (FTDs) have been begun to rise again.

FTDs topped 6.8 million in February (non-cumulative), amounting to more than $36 million in failed to close orders.

The data is still being reported which means there’s a possibility we may see higher FTDs once February’s entire month has been processed.

AMC Entertainment demands FINRA and NYSE to look into FTDs.
AMC Entertainment demands FINRA and NYSE to look into FTDs.

Now AMC’s CEO Adam Aron is demanding FINRA and the NYSE to look into the company’s alarming FTDs.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

According to Investopedia, AMC failure-to-delivers can also occur if there is a technical problem in the settlement process carried out by the respective parties (clearing houses).

Investors say there’s a major conflict of interest when Citadel Clearing LLC processes retail orders worldwide.

Adam Aron Demands FINRA and NYSE Look into AMC Stock

AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Daily: AMC Demands FINRA to Look at Skyrocketing FTDs.

Ever since the Genius Group (GNS) CEO Roger Hamilton publicly began calling out short sellers and #NakedShorts, AMC shareholders have been hoping for Adam Aron to also join the fight.

While Adam Aron may be binded to what he can and cannot say, this is the closes we’ve see the CEO to join shareholders in an activist role.

The CEO has been criticized for not speaking out on market injustices, even after skyrocketing reports of FTDs in the company stock.

And although the CEO has said in the past he has never seen any signs of ‘synthetic shares’ floating around, today’s news requesting FINRA and the NYSE to look into the company stock is a massive win for activist investors.

There is no longer denial, now there is acceptance of an important part of market structure that must be thoroughly investigated by our regulators.

But I’m curious to know how you feel about this investigation.

Do you think this will lead Adam Aron to dive into the rabbit hole?

Do you applaud the CEO for taking this unexpected approach?

Leave your thoughts in the comment section down below.

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Market News Today - AMC Demands FINRA to Look at Skyrocketing FTDs
Market News Today – AMC Demands FINRA to Look at Skyrocketing FTDs.

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GNS CEO Shares Petition to End Naked Shorting

Naked Shorting Petition
Market News: GNS CEO shares naked shorting petition.

Genius Group (NYSEAMERICAN:GNS) CEO shared a petition to end naked shorting on Twitter.

$GNS CEO Roger Hamilton is leading a movement created by retail investors to fight naked short selling.

The CEO said on Twitter that other CEOs $NWBO, $GTII, $MICT, $COSM, $CRTD, $MMTLP, $TRCH, are taking legal action with Wes Christian, a lawyer who has been investigating stock manipulation since 2000.

Earlier this month, Global Tech Industries Group (OTCMKTS:GTII) took legal action against naked shorts.

“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.

The CEO shared a petition from Change.org on Tuesday to stop illegal naked shorting.

More than 1,800 individuals have signed the petition.

Taking on Wall Street giants is going to take more than just a petition, but raising awareness is how change starts.

GNS: The Fight Against Naked Shorting

Market News: GNS CEO shares petition to end naked shorting.
Market News: GNS CEO shares petition to end naked shorting.

The Board of Directors (the “Board”) of Genius Group Limited, a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.

This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.

This Task Force will be led by Timothy Murphy, a Genius Group Director and former Deputy Director of the F.B.I., Richard Berman, also a Genius Group Director and chair of the Company’s Audit Committee, and Roger Hamilton, the CEO of Genius Group.

The Company has been in communication with government regulatory authorities and is sharing information with these authorities to assist them.

“It’s like being robbed in a library, but you can’t shout ‘Thief!’ because there are ‘Silence, please’ signs everywhere.” – Roger Hamilton, CEO of Genius Group Limited.

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Market News Today - Is Amazon buying AMC Entertainment?
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These 3 Signs Point Towards Naked Shorting in MULN

Naked Shorting MULN Stock
Market News Today: These signs point towards naked shorting in MULN stock.

Mullen Automotive (NASDAQ:MULN) stock has plummeted after rising earlier this year.

The stock fell to $0.21 on Monday and is currently down -32% this year-to-date after having surged to $0.44 in January and again in February.

MULN stock was given a price prediction of $24.15 earlier this year, up more than +7,000% from the then price of $0.32.

7 analysts from CNN Money said Mullen Automotive was a strong a buy yet the stock has fallen 34% in the past month alone.

Shareholders believe MULN has become a victim to naked short selling.

What is naked short selling?

Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist, per Investopedia.

The predatorial practice allows short sellers to short a stock without there actually being any stock available to short.

The SEC approved the use of naked short selling on IPOs in 2015 although it was deemed an illegal practice in 2010.

In this article we’re going over 3 big signs that point towards naked shorting in MULN.

Be sure to share this article with the community to raise awareness.

#1. Call Options Overweigh Number of Puts

The number of call options on Mullen Automotive continue to outweigh the number of put options.

Although volume has dropped recently, call options are still leading the derivatives market.

MULN call options vs put options – Franknez.com.

Even when MULN stock had hundreds of thousands of call option orders, the stock price was being suppressed despite very little put option volume.

Usually when the demand of a stock isn’t reflecting intraday, we can conclude that either heavy dark pool trading or naked shorting is taking place.

This is a big problem we’ve seen with other stocks such as AMC Entertainment for example.

Mullen Automotive stock has patterns that suggest suppression may be keeping share prices from rising.

#2. MULN Stock FTDs

Another clear indication of naked shorting in a company can be traced back to the number of FTDs out in the market.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-deliver can occur in options trading or when selling short naked, per Investopedia.

By the end of January, Mullen Automotive had more than 15 million FTDs amounting to more than $5 million, per Stocksera.

MULN stock FTDs
MULN naked shorting – MULN naked short selling – FTDs via Stocksera.

Naked shorting could be occurring in both shares and options contracts.

#3. Short Ladder Attacks

Shor ladder attacks are a way of trading back and forth between parties with the mission to drive shares lower.

It’s a loophole that isn’t necessarily deemed illegal but could be combined with the illegal tactic of ‘spoofing’.

Spoofing occurs when orders flood the market to change the direction of a stock but get cancelled right before they execute.

Signs pointing to naked shorting in MULN stock.

This form of naked shorting influences the market through the use of fake shares or ‘fake orders’ that don’t necessarily exist.

A perfect example of a short ladder attack can be seen in the image above where price chops upwards but ultimately drops lower and lower like a ‘ladder’.

This is manipulation of the stock from rising.

Related: Investors Say CEOs Should Fight Naked Short Selling Like GNS

Do You Think Naked Shorting in MULN is Happening?

Market News Today
Market News Today: These signs point towards naked shorting in MULN stock | Mullen Naked Shorting.

Leave your thoughts in the comment section below.

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The SEC Green-Lighted Naked Shorting of IPOs in 2015

SEC Naked Shorting
Market News Today: The SEC green-lighted naked shorting in 2015.

Forbes published a piece surrounding Uber’s ‘troubled’ IPO stating that the SEC green-lighted naked shorting of IPOs in 2015.

“A curious thing happened during Uber’s troubled initial public offering last week: naked short selling of UBER shares by the banks involved in placing Uber’s IPO, according to several sources who confirmed this to CNBC.

Normally, naked short selling is illegal.

But it was legal in this case, and it gave the banks a chance to profit–as investors lost money–when the IPO traded down 18% in its first two days.

Naked-shorting of IPOs by banks, which the SEC green-lighted as recently as 2015, has changed IPO market dynamics by altering the relative power between banks, issuers and investors. 

To the detriment of investors, banks now have less fear of incurring major losses from pricing an IPO too high because banks now have a tool (naked shorting) to protect their downside risk.”

Forbes said that thanks to the SEC’s explicit statement allowing naked shorting during IPOs, banks have a chance to win regardless of what the IPO is priced at, a fear they had prior to getting the green light on naked shorting.

In a space call with Genius Group ($GNS) CEO Roger Hamilton, a user had stepped up to question the proof of naked shorting discussed about in sort of media or case.

As you can imagine, speakers on the panel were quick to give the user the information they lacked to research in the first place.

But it’s there, and this is just one case on the proof of naked shorting in the market.

GNS Shares Plummet After IPO

2023 GNS #NakedShortsWar.
2023 GNS #NakedShortsWar.

Genius Group CEO Roger Hamilton said he suspected naked shorting was happening in his company stock after shares had gradually plunged after their IPO date.

Roger Hamilton has been leading the fight against naked shorts by not only raising awareness on social media but also by taking legal action.

The company just launched phase 2 of their legal battle against naked short selling.

One of the topics discussed in the space call with Roger was of dual listing using the blockchain.

My thoughts on the blockchain are that it provided accountability and less stress on investors when dealing with manipulative shorting tactics.

It’s still a very new innovation, especially when discussing a tradable blockchain exchange.

A great effort to fight naked shorting nonetheless.

“Naked shorting is impossible to do when securities are issued natively on a blockchain. Had Uber’s shares been issued on a blockchain rather than through legacy systems, banks simply would not have been able to issue more UBER shares than the quantity of shares outstanding. The price-suppressive impact of the naked shorting–however large or small it was in the Uber case–simply could not have happened,” said Forbes.

Related: Citadel Said in 2004 Payment for Order Flow Creates Conflicts and Should Be Banned

A History on Naked Short Selling

What is naked shorting?

Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the asset from someone else or ensuring that it can be borrowed.

Naked shorting was enabled legally by UCC Article 8 in 1994, owing to a combination of two features: (1) indirect ownership of publicly-traded securities and (2) a special exemption that obviates the normal requirement that the seller prove in advance that it actually owns the property it is selling to a buyer.

“What we actually own is an IOU from our broker-dealer–a contractual right to the shares instead of the real thing. Your broker, in certain circumstances, has the right to conjure and sell you IOUs to more shares than actually exist,” says Forbes.

The US legal system made a policy decision to favor liquidity over solvency–to favor negotiability of securities over keeping accurate and timely records of who really owns what.

Patrick Byrne brought naked shorting to the attention of regulators but was ridiculed and eventually paid off with a winning settlement to lay low.

After the events of the ‘meme stock’ frenzy in 2021, retail investors came together and scrutinized the SEC, DTCC, and FINRA for allowing blatant market manipulation to occur.

Retail investors were momentarily prohibited from trading shares of AMC and GameStop due to liquidity concerns within several market makers and brokers including Citadel and Robinhood.

The DTCC waived billions of dollars in collateral to reset the game for the big players, cheating retail investors out of their money.

“The problem is that “overissue” of securities suppresses market prices. This is one of many subtle ways that value is skimmed from Mom and Pop investors in securities markets.” – Forbes.

Market News Published Daily

Market News Today: The SEC green-lighted naked shorting in 2015.
Market News Today: The SEC green-lighted naked shorting in 2015.

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Franknez.com is the media blog that keeps retail investors informed.

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GTII Pursues Legal Action Against Naked Shorts

Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities.
Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities.

Global Tech Industries Group, Inc. (OTCMKTS:GTII) is taking legal action against naked shorts.

The Nevada corporation announced on Monday that its board of directors has authorized management to move forward with appropriate legal action in connection with what it believes to be illegal trading activity in the Company’s shares.

As the Company previously disclosed, it has retained the legal teams of Christian Levine Law Group, LLC, (“Levine”) and Warshaw Burstein, LLP, (“Warshaw”), both of whom have specific expertise in stock fraud litigation, to handle the legal actions for the Company.

The legal actions may be directed at broker-dealers, market makers and other relevant parties the Company believes have been engaged in illegal trading activities that have resulted in a significant number of unsettled trades involving the Company’s shares.

In particular, it appears that certain market makers have failed to post regular or continuous proprietary quotations that are at or near the market on both sides and that are communicated and represented such that they are widely accessible to investors and other broker-dealers.

When market makers fail to meet this requirement, as well as other applicable requirements, it can bring into question whether they are engaging in “bona fide market making” and can avail themselves to any “locate” exemptions afforded to bona fide market makers when executing short sales, per Global Newswire.

GTII Naked Short Selling: What’s Happening?

Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities.
Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities. GTII Stocktwits.

Global Tech’s press release published the following statement:

“It appears that certain market makers have failed to post regular or continuous proprietary quotations that are at or near the market on both sides and that are communicated and represented such that they are widely accessible to investors and other broker-dealers.

When market makers fail to meet this requirement, as well as other applicable requirements, it can bring into question whether they are engaging in “bona fide market making” and can avail themselves to any “locate” exemptions afforded to bona fide market makers when executing short sales.

Further, in a recent administrative proceeding between Alpine Securities Corporation (“Alpine”) and the National Securities Clearing Corporation (“NSCC”) before the U.S. Securities and Exchange Commission, it was disclosed that the NSCC imposed a “Backtesting Charge” against Alpine (which action was contested by Alpine) due to deficiencies in Alpine’s “Required Fund Deposit” with NSCC “. . . that were attributed to net short portfolios in several stocks, with the ‘top driver being a concentrated short position in GTII’”, which is, obviously, a cause of concern for the Company..”

Roger Hamilton (GNS CEO) on Naked Shorting

The legal action comes after Genius Group CEO Roger Hamilton urged CEOs to fight against naked shorts, the illegal practice of shorting stock without owning or having to return the shares back to a lender.

GTTI: Roger Hamilton on Naked Shorts and Wall Street Fraud. GTII Stock News.

“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.

The Board of Directors (the “Board”) of Genius Group Limited (NYSE American: GNS), a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.

This action plan includes creating a Board-led ‘Illegal Trading Task Force’ to actively pursue all possible actions together with the regulators in their discovery and prosecution of persons engaging in market manipulation involving the ordinary shares of Genius Group.

This Task Force will be led by Timothy Murphy, a Genius Group Director and former Deputy Director of the F.B.I., Richard Berman, also a Genius Group Director and chair of the Company’s Audit Committee, and Roger Hamilton, the CEO of Genius Group.

AMC, GME, Spark Major Interest in Market Manipulation

Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities.
Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities. GTII Stock News.

The AMC and GME communities initiated the controversial topic of naked short selling in the market during the events of the ‘meme stock’ frenzy.

Years of activism have triggered the momentum we’re seeing today in the retail community.

However, AMC and GME CEOs have stayed out of the fight against naked shorts.

AMC CEO Adam Aron has said in the past that they have not seen any ‘evidence’ of so-called synthetic shares.

Millions of retail investors holding the movie theatre stock have first-hand experienced the market manipulation, so this came off as rather appalling to most.

With GTII taking action against naked shorts, it makes you wonder; how many more companies will step up?

I’d love to hear your thoughts on this.

Leave a comment down below.

Market News Published Daily

Market News Today: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities.
Global Tech Naked Shorts News: GTII, Global Tech Industries Group pursues legal action against illegal short selling activities. GTII Stock News.

For more stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.

Franknez.com is the media blog that keeps retail investors informed.

You can also follow me on TwitterInstagramFacebook, or LinkedIn for daily posts.


You can now read exclusive FrankNez articles for only $1/mo.

  • Gain access to EXCLUSIVE FrankNez articles you won’t find here.
  • Become part of a private and safe Discord community, just for retail investors.
  • Get drawn at the end of the year for holiday giveaways.


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