Cytodyn Inc (CYDY)

[jboatswain]

SEC Rule 105 is there to prevent the abuse of shorting before dilution/offering. This rule can be legally circumvented.

Same thing with Reg SHO. Yes, it is there to avoid naked shorting. Still you can do naked short, through foreign exchanges. 100% of investors I know trust shortsqueeze dot com, daily SHO files as if it is God's truth of daily short interest. I bet only 0.01% of them have read the rules behind Reg SHO, how daily short is being reported. The only way to stop naked shorting is to force DTCC to publish daily. But DTCC is not regulated.

Retail investors have no say in these matters. If you talk to your local Senator, you will get response like yes, we have Rule 105, Reg SHO. That's it. And yet people get screwed.

That's why it is good to change one's strategy of investing, instead of waiting to close the loopholes.

Uplisting to NASDAQ doesn't change this dynamic. Biotechs are all about the trial data (esp double blinded P2), they need money to run trails. They need to dilute. Every dilution can force 50% cut. When there is no catalyst, expect PPS to sink. Instead of being long, one should learn to cut down losses and reenter.