Starfleet Innotech Inc (SFIO)

[lex_xxx]

I'm beginning to wonder if OTC is running cover
for CDEL and the other naked shorters.

The OTC watches after their MM's because the bulk of how they make their money lies between the bid and the ask on trades. If one or more of their MM's are in danger of facing a short squeeze due to a large naked short position, the OTC is going to do what they can to facilitate them if possible.

There is no way they are going to allow a short squeeze to happen if all they have to do is give the MM's more time to cover. That's pretty easy if the company being shorted is tied up in a filing process which is 100% controlled by the OTC's approval. We know that there has been a substantial naked short interest over the last month but we don't know what the total number is, but the OTC does. I suspect that was the reason for last Saturday's unusual level 2 activity was to determine the size of the deficit and to give the MM's a directive to clean it up. I suspect that most of the naked shorts were covered Thursday in the big "walk down".

Here is the link to the OTC short report for your toolbox ---> OTC Short Report

Current Report