What do you think?? Almost seems too crazy, but we are also talking about America and the financial system in a collapsing empire... soo.
Edit: adding description in case you are just clicking through: the post is about a conspiracy theory concerning potential large-scale fraud (fraudulently created fake shares) at the highest levels of the financial system involved in the GME short situation, and presents evidence from an official filing that clearly shows the number of "fails-to-deliver"s for gamestop shares are an extreme outlier compared to other stocks
can you explain this please? What does it all mean (failure to report etc)?
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If someone were “selling counterfeit stocks”, then wouldn’t there be more stock out there than actually “should” exist? In which case wouldn’t we expect to see OVER reporting of stock ownership rather than under? Unless the perpetrators responsible for selling stock that doesn’t exist also HOLD some of the stock, but decide to under-report their own holdings to try to hide that there is more than 100% existing, and “slightly” overshoot as a safety margin? But if that were the case and they hold enough stock to do this, why wouldn’t they just sell the real stock they actually own, instead of selling fake and pretending they don’t own some?
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If you understand fractional reserve banking, file naked short selling in the same part of your brain, since it's a similar mechanism.
A short seller borrows a stock to sell it, right? Except not really. They sell a contract to deliver a stock at the current price, and then they go looking for a stock to borrow. They have 3 days to deliver the stock they sold before it becomes a "failure to deliver", but there are various levels of fuckery they can use to increase that deadline.
If you think you can short sell enough to tank a stock, you can sell many more shares than actually exist on day 1, buy/borrow some of them on day 2 to fulfill some deliveries, and repeat again, shuffling between contracts as needed. Supply/demand is an actual thing that actually exists on the stock market (at least in the short-term, with options/limit orders/whatever), so artificially increasing the amount of stock available will drive the price down. The "conspiracy theory" part is that hedge funds coordinate these attacks, and buy the naked shorts from each other in order to make sure there are enough bids to meet all the asks, and then maybe they don't get too hung up on reporting failures to deliver. The goal is that the artificial, time-limited dip in stock price causes enough of a panic to keep the stock price low enough to unwind and cover all the shorts.
"Counterfeit stock" is kind of a value judgement by the guy in the OP and his sources, not any kind of legal thing. I'm not sure there are any actual laws against any of this outside of the conspiracy theory part.
This is the simplest part, and the part I can kind of understand, which is just "naked short selling." Apparently there is other related fuckery that does the same sort of thing on a longer-term basis.
AFAICT, it's a very specific kind of fraud. They're lying about having/shorting more gamestop stock than they actually have. As long as the total fake and real shorted stocks doesn't go above 100%, it's apparently really hard to detect.