Welcome to Extreme Investor Network, where we bring you the latest news and insights in the world of finance. Today, we dive into the unfolding drama surrounding Donald Trump’s social media platform, Truth Social, and the allegations of market manipulation by “naked” short sellers.
Devin Nunes, CEO of Trump Media & Technology Group (TMTG), recently sent a letter to Nasdaq CEO Adena Friedman, requesting cooperation in investigations into the alleged market manipulation of TMTG shares. Nunes specifically asked for electronic blue sheets containing trading data from April 29 through May 3, as well as data from May and June, to be provided to regulatory agencies like FINRA.
According to Nunes, there are concerning “anomalies” in the trading of TMTG shares, with data from the SEC pointing to growing severity. He also singled out financial firms like Citadel Securities, Jane Street Capital, and UBS, asking for more information on their involvement.
Nunes emphasized the importance of Nasdaq’s cooperation in congressional or other investigations into these firms, urging prompt data sharing. This is not the first time TMTG has raised concerns about potential market manipulation, previously reaching out to the exchange to prevent such activities.
“Naked” short-selling, a practice illegal in the US, involves selling shares without borrowing them first, leading to the risk of not being able to deliver the shares. TMTG has been proactive in addressing these concerns, requesting investigations into alleged illicit activities in the trading of its shares.
Since its public debut in March, TMTG has experienced a roller-coaster ride, initially seeing a surge of support from Trump supporters and speculators. The stock soared by as much as 59% on its Nasdaq debut before reversing those gains.
Stay tuned to Extreme Investor Network for more updates on this developing story and for expert analysis on the latest trends in finance. Subscribe to our newsletter for exclusive content and investment tips that will help you navigate the complex world of finance with confidence.