GNCC Capital Inc (GNCP)

[TheFutureForsure]

The DOJ has Selected a Few BIG EXAMPLES to Show the Public How Abusive Short Selling has Hurt Many Thousands of other Companies all across different Exchanges throughout the entire Stock Market!!!!!!!

Here is Just One Example…..

https://www.thestreet.com/memestocks/gme/gamestop-stock-short-sellers-under-scrutiny

GameStop Stock: Short Sellers Under Scrutiny

With alleged illegal trading tactics under investigation, short sellers are officially on the DOJ's radar. Here's what this could mean for GameStop stock.

BERNARD ZAMBONIN AND GUEST CONTRIBUTOR
6 HOURS AGO

GameStop (GME) - Get GameStop Corp. Class A Report investors should be feeling vindicated this week. That's because the U.S. Department of Justice (DOJ) is investigating short-selling practices retail investors have been complaining about when it comes to GME.

According to a Wall Street Journal report, the Justice Department has been collecting private conversations and trading records as part of an investigation into whether short sellers have used illegal trading tactics to manipulate the price of shares on the market.

Here is what the DOJ investigation could mean for GameStop stock.

Spoofing and Scalping

The Department of Justice is investigating short sellers for alleged illegal trading practices involving "spoofing" and "scalping."

Spoofing is a market manipulation tactic in which a trader issues an order and cancels it before it's executed to create an illusion of supply and demand. This pressures market participants into buying or selling.

The anti-spoofing statute is part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which established changes to the American financial regulatory environment.

On the other hand, scalping is similar to pumping and dumping. It consists of buying a security before recommending the same security as a long-term investment without a disclosure. After making the recommendation, scalpers then sell their positions for a profit.

Around 30 short-selling firms are being investigated. Among them are Muddy Waters Research, Citron Research, Hindenburg Research, Sophos Capital Management, and Melvin Capital Management. Melvin Capital is a notorious short-selling firm that has bet against GameStop since 2014.

Although the investigation is ongoing, no conclusion or indictment has yet been made by the Justice Department.

Transparency Concerns

Concerns about the lack of transparency in financial markets are nothing new. With the rise of electronic and high-frequency trading in the early 2000s, the markets have become a bit more of a black box. Naturally, theories have arisen that conflict of interest and market manipulation are harming retail investors and favoring private funds.

The birth of Reddit's "meme frenzy" was made possible by GameStop's insane trading activity and by new retail investors benefiting from commission-free brokers like Robinhood (HOOD) - Get Robinhood Markets, Inc. Class A Report.

Ironically, the payment-for-order-flow (PFOF) model used by these companies has also become the subject of skepticism and scrutiny. Some wonder if and how the big wigs on Wall Street continue to benefit from individual traders.

For the first time, Robinhood was ordered to pay nearly $30,000 in compensatory damages to a retail investor. This investor had filed a complaint about having suffered significant losses due to Robinhood's decision to restrict trading in certain "meme" stocks in January 2021.

Call to Action

The DOJ hasn't taken any action regarding the irregularities of short sellers' trading activities yet. But before anything can be done, hard evidence must be analyzed. This may take some time. But as the old saying goes, there's no smoke without a fire, right?

The Justice Department's scrutiny of short sellers could be a good thing for GME investors. It suggests that their complaints regarding market irregularities could prove to be well founded. And it's possible regulators might step in and move against predatory short sellers.

In any case, GameStop's official short interest is still high. It's possible we could see another short squeeze in GME again, if bullishness continues to grow.

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GNCP and Thousands of small cap companies have been victimized by Abusive Short Selling and too could soon SQUEEZE imho.

GNCP $$$$$$$