GNCC Capital Inc (GNCP)

[Eli's Gone]

It is impossible to "document" a naked short position at the end of a trading day from any data publicly available--especially the FINRA Daily Short Report...

100% numbers(or any %) on that FINRA Daily Short Report do not necessarily indicate a short position at the end of the day...

Understanding trade transactions and these two docs may help:

https://www.sec.gov/comments/sr-finra-2009-064/finra2009064-1.pdf

https://www.securitieslawyer101.com/2016/when-shorts-hit-cannabis-stocks

here is a numbers example:

Trader A has 100M shares for sale at the ask.

Trader B enters a buy order for 100M shares at the ask.

If this trade cannot be transacted at the broker level internally, the MM will fill B's buy order short.

The MM will then immediately buy 100M shares from A's sell order.

The tape will print 100M.

The Finra Short Report will reflect 100M shares short (100%)

There is no open short position in this example or on any cold winter's day--nor will there be any fails-to-deliver...

The MM will be flat i.e. no position

ps...trades usually happen in this sequence because the MM holds no inventory of junk stock-nor do they undertake any risk by holding this junk even momentarily...

ps2...the trade also happens this way if the 100M shares seller is hitting an order at the bid---it's called riskless principal and happens all day every day...