by Whiskiz
For those that aren’t aware and haven’t been following the story for the last couple of months, it’s a long story with lots of parts – so here’s the short version first of all:
There’s another company in the same situation as us (heavily naked shorted, backed by alot of value investors on the long side) and that company went to merge with another, private company making their company private as well – but it’s illegal to have shorts in a private company.
The SRO responsible for overseeing this stuff did a bunch of dodgy things, with the last major action being halting the trading of the company 2 days early so their short buddies never had to close! Then the company merged and went private anyway – with a ton of illegal shorts and also long investors now stuck in limbo (who exactly are the real owners of the real shares of the new company – when there are so many synthetics out there? many more multiples of the entire outstanding float?)
For the longer version, leading up to the halt (so much more has happened since then) here’s a great firsthand accounting from the then CEO of the company himself:
Since the halt, the short version is those long investors did an amazing job not letting this go and get swept under the rug, like most everything else (including our situation) by:
1 – Filing multiple lawsuits, including from a woman that’s one of the househodl investors themselves, that happens to also be practicing law! Who is super smart and was able to fight straight through their boilerplate and frontline defence “immunity” claims.
(The court case is still ongoing, with a law firm that needed to jump in on the SRO’s side instead of the one rando person they first sent in with the boilerplate garbo initial response, who apparently didn’t even have the credentials to practice law in those courts at the time, until then lol)
Here’s the details about that potentially most-promising court case, with the wicked smaht househodler and how it differs from the usual lawsuits:
2 – They also got loud, so loud that even a responder from the FBI said they’ve been getting a ton of communication about the matter and that everybody, not just in the FBI now knows about it and is trying to figure out what’s going on. They sent communication to FBI, local state reps, Congress, SEC, the SRO themselves you name it (Basically the same thing we did but i guess they just couldn’t ignore it this time, since the company is now in limbo so the situation won’t disappear until it’s resolved one way or the other, making the entire system look worse and worse until it is)
They’ve even made a massive movement on Twitter, with regularly held Twitter Space talks for updates and publicity, a few big names have gotten in on it with their massive twitter audiences and so it’s now to the point where even Congress is actually getting involved.
3 – They also made some FOIA requests regarding the events leading up to the halt (like we also tried, but got shutdown by the SEC?) which 3 months later (recently) actually came back and makes things even worse for the SRO with some really damning evidence, showing that they knew there was heavy fraud beforehand then decided to halt things and become accomplices to it all, and that also the SEC was aware of things leading up to it with both their fraud departments being in communication!
Seems everyone knew about it but the public investing in the company, as per usual………..
4 – They even staged a protest outside SEC HQ
So now here’s the latest update and response from Congress:
That Youtube channel (and multiple others) is also great for more details on the entire matter, including everything that happened after the halt at the start of this year, up to now 3 – 4 months later (so going back a few months in video history.)
Apparently Congress also subpoenaed someone from the SRO and they tried to plead the 5th to Congress (LOL) citing the ongoing lawsuits, so they’re looking as bad to everybody as they actually are, everyone is getting in on it and maybe finally some justice is going to get done.
To the point that CONGRESS IS NOW LOOKING INTO REFORMING REGULATION SHO AND NAKED SHORT SELLING REGULATION!
Which is the best course of action because they’re doing this market wide, which is ruining peoples’ lives market wide and potentially creating systemic and IDIOSYNCRATIC risks market wide, while it’s already ready to implode from like 20 other things (because of other abuse of regulation and legislation or lackthereof, just, like, this………)
So those guys are ACTUALLY IN THEIR END GAME, it looks like the market cartel are not going to get away with it this time, and legislation as we know it may change finally to cure this blight on the entirety of the US markets and its economy!