It’s not the posted short position, it’s the naked short position. We all know it’s crazy high here.
This is what drives me nuts about the SEC. They will not halt a play on first 3 or 4 PRs when naked short position is low, they seem to only step in after MMs get caught and us retail are heavily vested. Why don’t they ever halt any of the plays when first few PRs came months ago, or when trustees didn’t file years ago.
Retail see first 4 or 5 PRs go through and then start to feel comfortable as no suspensions or stop signs so over time they keep attacking as they see MMs getting reckless and abusing the liquidity loophole that allows them to to naked short without reporting. Then all these MMs get trapped and hire a team to start the fear mongering and start filing complaints to SEC on technicalities. As they file complaints, they increase their short positions. The SEc then after months or years of do nothing, then step in when naked short position is so high and bail out the reckless MM. There is no doubt a correlation beteeen naked shorts and these halts.
I have been rapped of 100s of thousands from SEc, I seen this over and over again. Sometimes SEC nab the crooks, sometimes it’s just to slow down the bull market in a sector and other times it’s just to bail out MMs as they just give generic reasoning that could be applied to 100 other tickers but target just a few.
