DD Support Board and Research Team

[BigBake1]

Absolutely false, the issue is OTC securities, claims of shorting and naked shorting are in fact baseless 99% of the time. Naked shorting occurs every day on most of the trades on the OTC Markets in a Riskless Principal transaction. MMs do not own inventory in this junk and will not purchase shares from seller first and then sell to a buyer on another leg of transaction, as that becomes ownership of those shares and induces risk. So instead they sell to a buyer first in an open transaction while buying the shares from the seller, avoiding ownership and risk.

Otherwise OTC Markets would have very little liquidity, it would be just internalized order within individual brokerages. The MMs facilitate transaction between brokers on OTC Markets, without them there isnt a true market. Its what is called a 2 tier market, brokers represent the first tier, while the upper tier are the MMs completing transactions between the brokers.

Brokers have naked shorted OTC stock, in fact, often it is during opportunities of pump and dumps where the stock price is high, think in $4 ranges and up, where it is clear there is nothing business wise there, CYNK is a perfect example of insider manipulation that caught one broker in a trap and that guy lost a lot of money and his job in the process, he paid losses from his own personal savings to his brokerage to cover the loss. Despite the fact it was manipulated.