/biz/ - Business & Finance

They have gone from naked shorting, to simply naked selling. You might wonder "what? isn't that the same?". It's not. With naked shorting, you are selling a stonk you claim to have borrowed. This adds to the short interest % that can be estimated based on trading data. However, if you naked sell, you are just selling a share you claim to have that you don't have. It doesn't show as a short.

They can do the same with covering. They do something called a naked cover. They give back a share they borrowed to someone. The problem is, they don't actually have that share.

These tricks don't start to show until settlement time, where whatever amount of fake shares they couldn't churn get the status as Failed To Deliver. Settlement is due in 3 days in USA. They were already struggling to keep it under 1M Failed To Deliver last week before the big "drop in shorts" monday, and the Failed To Deliver is just the tip of the goldberg. Just like you can juggle credit cards with the 30 day limits, you can juggle shares due with the 3 day settlement limit.

https://www.youtube.com/watch?v=I0WXg5T3cBE

https://www.youtube.com/watch?v=I0WXg5T3cBE
https://wherearetheshares.com/
http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html
https://www.reddit.com/r/wallstreetbets/comments/lb8hjc/datadriven_dd_i_analyzed_265000_rows_of_sec_short/?utm_source=share&utm_medium=ios_app&utm_name=iossmf