Donald Trump, through Trump Media & Technology Group (TMTG), is escalating his battle against illegal short selling, targeting a UK-based hedge fund, Qube Research & Technologies, which disclosed a $105 million short position against TMTG’s stock (NASDAQ: DJT).
This aggressive bet against the parent company of Truth Social has sparked immediate action, with Trump Media urging the U.S. Securities and Exchange Commission (SEC) to investigate potential market manipulation, specifically allegations of illegal naked short selling, per Business Insider.
As Trump’s administration prepares to tackle financial misconduct, retail investors—particularly those holding stocks like AMC, GameStop, and those impacted by the MMTLP fraud—are rallying behind the move, hoping for a crackdown on Wall Street giants like Citadel and greater accountability for bad actors in the financial markets.
The $105 Million Short Bet and Trump Media’s Response
On April 10, 2025, Qube Research & Technologies disclosed a short position of approximately six million shares in TMTG, valued at roughly $105 million, through a filing with Germany’s Federal Gazette Bundesanzeiger.
This position, representing 2.53% of TMTG’s free float, was the first regulatory short disclosure against the company, according to research firm Breakout Point.
Short selling involves borrowing shares, selling them, and repurchasing them at a lower price to profit from a stock’s decline.
However, Trump Media alleges that Qube’s actions may involve “naked short selling,” a practice where shares are sold without being borrowed, which is illegal, though not restricted, in the U.S. due to its potential to artificially depress stock prices and destabilize markets.
In a memo dated April 17, 2025, sent to SEC Acting Chairman Mark Uyeda, TMTG raised concerns about “suspicious trading activity” surrounding Qube’s disclosure.
The company pointed to several red flags: the short position was disclosed only in Germany, not in the U.S. or UK, where Qube is based; major exchanges like Nasdaq and NYSE Texas could not confirm the timing or existence of Qube’s trades; and the total short interest in DJT stock remained nearly unchanged at 11 million shares as of April 16, 2025, despite Qube’s reported position.
TMTG argued that these factors, combined with DJT’s presence on Nasdaq’s Regulation SHO Threshold Security List for over two months in 2024—a list indicating potential short-selling issues—suggest possible illegal naked short selling.
“We urge you to immediately investigate this suspicious trading and report your findings back to TMTG and any relevant civil and criminal authorities,” TMTG stated in the memo, emphasizing the need for transparency in U.S. equity markets.
The company’s stock, which has faced volatility since going public in March 2024, rallied by about 7% on April 17, 2025, following the announcement, though it remains down 44% year-to-date after a doubling in value in 2024.
A History of Suspicion: Trump Media’s Ongoing Fight
This is not the first time Trump Media has sounded the alarm on potential market manipulation.
In June 2024, the company called on Nasdaq and Congress to investigate “anomalies” in DJT’s trading activity.
Earlier in April 2024, TMTG CEO Devin Nunes wrote to Nasdaq, alleging that four firms, including Citadel Securities, were responsible for 60% of the stock’s trading volume, potentially engaging in naked short selling.
These repeated claims reflect TMTG’s broader narrative that its stock is under attack by short sellers and market manipulators, a sentiment that resonates with Trump’s base and retail investors.
Trump himself has publicly addressed these concerns, posting on Truth Social in April 2025: “There are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth. THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING!”
This statement came amid fears that a potential sale of Trump’s 53% stake, held in a revocable trust, could further depress the stock price.
In 2024, Truth Social, Trump’s social media site publicly scrutinized Ken Griffin’s Citadel Securities for naked short selling the market.
“Rather than support our common sense efforts to promote transparency and compliance, Citadel Securities bizarrely targeted our CEO with an unhinged attack. Here’s our response:
“Citadel Securities, a corporate behemoth that has been fined and censured for an incredibly wide range of offenses including issues related to naked short selling, and is world famous for screwing over everyday retail investors at the behest of other corporations, is the last company on earth that should lecture anyone on ‘integrity.’”
Related: Trump Media Now Signals Illegal Activity in DJT Stock
Retail Investors Rally Behind Trump’s Crusade
Trump Media’s fight against alleged illegal short selling has struck a chord with retail investors, who have long battled what they perceive as predatory practices by Wall Street hedge funds.
Stocks like AMC Entertainment and GameStop, which became “meme stocks” during the 2021 retail trading frenzy, have been at the center of similar controversies.
Retail investors in these stocks allege that hedge funds, including Citadel Securities, have engaged in naked short selling and other manipulative tactics to suppress share prices, costing small investors billions.
The MMTLP (Meta Materials Preferred Shares) scandal has further fueled retail outrage.
Investors in MMTLP, a security tied to a spinoff from Meta Materials, were defrauded when trading was halted in December 2022, due to naked shorting and regulatory failures.
The incident left thousands of retail investors with worthless shares, prompting lawsuits and calls for SEC reform.
Posts on X reflect the sentiment among retail investors, with users like @ace_report noting: “For years retail has been fighting and getting famously robbed by hedge funds in stocks like $GME and $AMC.
And yet it took until Donald Trump had a company $DJT getting destroyed by naked shorting and manipulation for a CEO to finally go on blast about it to the SEC.”
Another user, @DonnahueGeorge, speculated that an SEC investigation into DJT could “expose AMC GME naked shorts,” calling for action from regulators and law enforcement.
These investors see Trump’s administration, with its populist rhetoric and distrust of Wall Street elites, as a potential ally in holding bad actors accountable.
They hope Trump’s influence could pressure the SEC to crack down on firms like Citadel, which has faced scrutiny for its role as a market maker and its alleged involvement in short-selling controversies.
Retail investors are also encouraged by Trump’s pick for Vice President, JD Vance, who in 2024 signed a letter demanding answers for the MMTLP community, signaling potential support for retail investor causes.
Also Read: A Congresswoman Now Introduces Bill To End FINRA
The Broader Implications: Wall Street Under Scrutiny
Trump Media’s allegations against Qube and its broader campaign against short selling tap into a growing distrust of financial institutions.
Naked short selling, while rare due to strict regulations, remains a lightning rod for controversy.
The practice can exacerbate stock price declines and undermine market confidence, particularly for volatile stocks like DJT, which attract significant retail interest.
Supporters of short selling, however, argue that it helps expose overvalued companies and uncover corporate misconduct, contributing to market efficiency.
Qube, a London-based hedge fund managing approximately $23 billion in assets, has defended its position, stating that its short in TMTG is driven by a quantitative model, not a view on the company’s fundamentals.
The firm’s disclosure in Germany was made to comply with local short-selling regulations, but TMTG’s memo questions why a UK-based entity with a data center in Iceland would report trades only in Germany, raising suspicions of regulatory arbitrage.
The SEC has not commented on TMTG’s request for an investigation, but the agency’s response could set a precedent for how it handles allegations of market manipulation under Trump’s second term.
Retail investors are watching closely, hoping for reforms that could level the playing field.
Some, like X user @BossBlunts1, point to past instances where TMTG’s complaints coincided with stock price surges, suggesting that public pressure from Trump and Nunes could deter short sellers.
Also Read: Citadel’s motion to dismiss has now been denied in NWBO case
What’s Next for Trump Media and Retail Investors?
As Trump Media pushes for an SEC investigation, the outcome could have far-reaching implications.
A finding of illegal naked short selling would validate TMTG’s claims and potentially lead to penalties for Qube or other firms.
It could also embolden retail investors to demand similar investigations into AMC, GameStop, and MMTLP, putting additional pressure on Wall Street giants.
For Trump, the fight is both financial and political. Protecting TMTG’s stock price safeguards his personal wealth—his 53% stake is valued at over $2 billion—and reinforces his image as a champion of the “little guy” against establishment forces.
Retail investors, meanwhile, are betting that Trump’s administration will deliver on its promises to reform Wall Street, with figures like Devin Nunes and JD Vance leading the charge.
In the volatile world of meme stocks and retail trading, Trump Media’s battle against short selling is more than a corporate dispute—it’s a rallying cry for a movement seeking justice in the markets.
Whether the SEC takes action remains to be seen, but the stakes are high for Trump, his company, and the millions of retail investors watching from the sidelines.
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Also Read: Investors now urge President Trump to investigate naked short selling in formal letter
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