Cytodyn Inc (CYDY)

[Scooter McCabe]

Short Report 7/1/2020

Yesterday we saw 8 million shares shorted.

https://www.otcshortreport.com/company/CYDY

It is roughly half the volume of trades and that is important.

Another feedback Loop To 10

One of the things that contributed to our rising share price was a number of shorts trying to plug away over the past couple of weeks. However they kept slamming into hard bottoms where the educated money sits. Without the movement needed to profit, some had to buy up shares to cover. Some ate losses and tried again.

So we had numerous gap filling days, and for your day trading gamblers they like seeing that. So they came in and bought up shares. Pushing the price up and forcing the shorts into a tight position.

If over the next couple of weeks we run flat or creep up, another feedback loop will occur. If that loop is made up of day traders that went through the first raid and got caught, they may not set stop losses. If it's completely new money you can expect another round of trophy taking.

Why Another Massive Short Attack Is A Double Edged Sword

With Citron Researching pulling its hit piece it raises questions as to the validity of the short attack being "short activism" or manipulation. Doing what Citron did is something of a one time magic trick. If they engage in a behavior of releasing and retracting a pattern of manipulation emerges. Making it much easier to prove a crime has been committed, as opposed to a one time "oops."

The other problem of multiple attacks is it forces more focus onto the target company. If the company turns out to be "on the level" it gives contrarians a reason to invest into the company: "Andrew Left was wrong about a lot of stocks and they soared, he is wrong about this one therefore..."

This is bad for the infomercial investors like Tim Sykes. What is an infomerical investor? Well it's someone who sells a "system" and their money is more off of getting people to buy a course than actual trading. They only occasionally have to score big to keep idiots listening to them.

Citron Research and Tim Sykes Likely Collaborated.

We have weeks of Tim Sykes students trickling into CYDY, shorting and lossing 2 to 3k a clip. We know this because they are helpful enough to post their losses on his site.

So having a band uneducated rubes losing money isn't good for a "wunderkind short seller" reputation. In order to have a win and continue to sell himself Tim needed CYDY to take a fall. Andrew Left who is bent as a right angle is always happy to make money and the two are very aware of each other.

So Andrew Left, Tim Sykes and Tim Sykes students all engaged in the same play. The money made pads Andrew Left's pocket, Tim Sykes quiets his disgruntled students, and unaffiliated shorters none the wiser shrug and marvel at a good day.

How Do We Know This Likely Happened?

First Tim Sykes Twitter is a smoking gun. Prior to the manipulation on the 30th his Twitter is free and clear of CYDY. After the attack he begins spamming about he followed it for a year. Then continues insisting he followed it, and that he knew anything about it.

But it becomes clear in his later Tweets as he defends himself, that something isn't on the up and up. Over the last 9 hours he begins DARVOing:

Deny Accuse Reverse Victim

To alll those saying their piece of shit penny stock pump is saving lives, this is the same argument used by penny stock pumps for decades, most notably Justin Bieber’s pump which I exposed several years ago, it’s nothing more than hype used to lure in newbies & scare off shorts

— Timothy Sykes (@timothysykes) July 2, 2020

This is because he said something really stupid. He only buys and sells on "intra-day panics." The problem is predicting when an intra-day panic happens is like predicting when a particular number on a roulette wheel hits.

Typically these kinds of panics occur directly after bad news is released and the market moves rather quickly. So being able to short at the very top of a panic is next to impossible. Unless you are inducing the panic.

Remember the Citron Research report was released 9:30 AM Eastern Standard time. It is not for another 2 hours before the attack occurs. Right when the stock hits 10 dollars a share. There was no panic to that point. Hitting 10 dollars a share on a strong week doesn't cause people to run. There were small dips on the way up. There was the 60 cent gap fill.

Then Tim Sykes created a panic under the cover of "well there was this research report, but it got pulled" malarkey. So 2 hours after the report, no panicking. Then a concentrated effort based on what the shorts understood could happen. Enough day traders sell off due to stop losses set, the uneducated money will follow suit.

They probably hoped to see it fall to 2 dollars a share but got a shock when they hit that hard 5/6 dollar floor. But getting a panic in at 10 instead of 7,8 or 9 ensures a big enough swing will occur.

Then we have the other smoking gun. Andrew Left pulling his report and going scorched earth on every place linked his article. If this was a legitimate article he would not have had to retract it. Normally Andrew likes to crow about blasting a company, but his Twitter is dead silent. A cat that ate the canary kind of silence regarding CYDY.

So What Can You Do?

Outside of the SEC or FBI showing up to their doors, your focus should be doing your Due Diligence.

If you are comfortable with your position, do like me and sit on it and roll your eyes at the fake news.

If you want to increase your position, buy anytime we have a dip. They gamble on emotions, they aren't following the science or FDA process.

Most importantly keep doing your DD.