What evidence do you have of wash trading? How would you tell if something is a wash trade? How would you determine if someone is naked shorting? What evidence would you provide for something like this?
Notice I am not 100% sure myself. I am a computer scientist who got caught in this and question my sanity sometimes (as someone else posted a while back, there are many groups who obsess and conspire over this).
So any advice, help or insight might be useful.
1 and 2 have nothing to do with any of your claims
3 is the only way to sell stock in a thinly traded market.
4 i'e been in the industry for more than 10 years and have never come across anyone who has actually performed these fabled short ladder attacks.
This isn't something that happens, its a creation of the hive mind of /r/superstonk.
If they want to say its a real thing then the onus is on them to put forward some evidence that it happens. I so far havent' seen anything that looks compelling.
Point 5 makes no sense at all, why would people cover all at the same time?
6. this is what happens with shitty stocks that has someone trying to offload their long position, it by definition, has to close down as the selling pressure overwhelms the buying pressure.
7. again no sequitor and has nothing to do with shorting or wash trading.
Do you have any actual data to back up the wash trade or short claims?
And as a side note, shorting to zero isn't something that happens as you need to close out your position by buying to make any money. And as stock prices drop they run the risk of being delisted before the shorter can buy back their position. Which is a terrible position to be in.
A typical shorter will short at $100 and buy back at $50 or $25 and doesn't mess with anything under a $1.
If you want definitive proof, you need to see sell tickets. That is what our whistleblower reports to the SEC have been requesting. I do not have sell tickets.
I wrote this as a response before: my biggest proof was that over the past year, if I tally up the number of uncovered short sales it is more than 2M. How do I know that these sales are uncovered? If there is any day with more than 50% shorting, I know that the short cannot have covered. If I tally up the differences, I get at least 2M uncovered over the past year. This model assumes that the short covers the same day (which we can see from tape they do not). Even if they did cover the same day, they are still short 2M shares uncovered.
I was mistaken with "short ladder attack" - I should have said short attack. The price action is strange. A bunch of selling say happens at one price point, and then the seller reduces the price by 10c and offers a huge lot. When we try to take the wall, the offer is withdrawn. We have definitive proof of spoofs that were withdrawn like this.
1 and 2 are very relevant to the current discussion. Since the toxic lender has done exactly this to other companies. As soon as a loan is given, they short the company to shit. Except here the company returned the loan. They have been fined by the SEC for similar behavior before and this playbook is seemingly related. The closest is (Badian and Sedona, https://www.sec.gov/news/press/2003-26.htm). So it is not inconceivable that this is happening here.
I have screenshots that I have submitted to the SEC. I can share them with you.
Like I said, I understand the OTC is ridden with fraud. And this may well be the case here and I fully admit I may be wrong.
It's generally pretty hard to short OTC stocks, so the idea that someone is out there short 10s of millions of shares is pretty far-fetched. And to what end? If the stock has gone down they're probably covering, not adding.
Roughly half of OTC stocks are themselves scams, run by crooks. Is the company funding itself by continuously selling shares? Check their SEC filings for ATM offerings.
If you genuinely think the fundamental value (not the share price!) of the company will be substantially higher than its current trading value, then go ahead and take advantage of the artificially low price, buy some, and be very patient and ignore the day-to-day stock price movements.
If you're in this stock because you've convinced yourself some short seller has overextended themselves and will get squeezed, well... Prepare to be disappointed.
There will be no reckoning. What they're doing is scummy but legal. The selling will only stop when no outsiders will buy any shares at any price.
Well, legal as long as they don't short ahead of time. But either way, it's a terrible investment for you.
Appreciate the advice.
Which stock?
There are a lot of cult-ish communities around certain stocks that "know just enough to be dangerous" and end up misinterpreting a lot of signals as naked shorting and such. The narratives sound good to people who are holding the stock, but they're almost always completely flawed.
If the complaints are basically coming in bulk with the same reports that can be traced back to a Reddit post or something, they're probably going straight to the trash.