they don't care. I mean I said they are petty...but their PROGRAMMERS are petty lol.
most stocks, and definitely UBQU's market makers are run by computer programs called algorithms.
the goal of a "true" MM is to be "equal" on both sides of the trade. let's talk say microsoft. so MM's SHOULD have millions of shares of it for the daily trades. they are supposed to sell high, buy low. and make money on the arbitrage.
the reality if you've been following the meme trades is they don't on many stocks, they just naked short sell (which is LEGAL and called short exempt) to the demand (typically retailers on memes) and hope later the retailers will sell in disgust, they buy back the naked shorts and clean up. recently, apes in many other stocks haven't sold, so MMs are holding a huge bag of fail-to-delivers
now the old saying was the OTC is sooo different than big exchanges, nobody can short penny stocks blah blah blah the OTC is the wild wild west.
well turns out that wall street is mad max thunderdome, same anarchy bigger stakes.
so in the end the "idea" is that UBQU is now "trading" at 000001 and 0001 (that's a 100x spread, GREAT for mms, horrible for retailers)
by now, even though its speculation, so many retailers have sold out of the 29B dilution pig float I'd be surprised if retailers are holding more than 5B of it. leaving MMs holding 24B.
sounds bad for the MMs but no, keep in mind whoever buys those 000001s is a MM, probably citadel but could be virtu, susquehanna, CTSI etc.
but say citadel, they get 1M shares for a DOLLAR, and a billion shares for a thousand dollars.
anyhoo the idea is to appear "break even on the trade" the reality is today we sold 56001 to 000001 for .0056 dollars.
why would the algos be programmed to do this/
well they tie it to the main indices, probably this one is tied to the meme trades. they shot up today, that's why we have machines buy about 12M today for 1200 dollars. and .0056 in sells.
but in the end the algos want to get us to sell right? so say the algos are tripped from BUY due to powell getting awful dovish to SELL.
it means movie stocks and game stock memes don't rocket....and down here in lil ol ubqu with so few retailers doing anything any more, some MM which paid probably at most 5.60 cents for 56K shares at trip 1 sells it to lose that 5.60 dollars.
since these MM clowns make millions to billions a day (not any more) ripping off retail investors and claiming oh no we're all about market fairness and 0 cost trades blah blah....who cares indeed if they take a 5.60 loss....to...further upset UBQU baggies who maybe have 10M-100M shares of this to watch their accounts flip down by 1000 to 10,000 bucks. which might make those baggies upset. might make them stack the ask at trip 1 to get out of the play due to disgust, and when the MMs are ready, they'll be happy to snap it up at 100 per million whent he Mm algos want to take UBQU or another nobid penny to....0040? .01? one trip ran to 9 dollars in 2021, and right back down days later.
oh by the way, 21K more BUYS came in after the 56K sell at trip 1. but our PPS stays for the day at 000001....even though in fair world it should be 0001 again.
that's intentional. they can claim well UBQU is a POS at nobid so the OTC gives it last care for technicals. oops technical glitch, and yeah most likely tomorrow morning we'll pop back to 0001 if the algos keep buying..all depends on whatever basket of memes UBQU's algo is connected, barring we get a catalyst like a FILING so we can stay pink. I think that's why I and other retailers aren't even willing to risk buying the trip 1s any more.
someone much smarter than me said "The OTC is Kenneth Griffen's backyard (and trips are the dog poo in it)" that's the OTC. wall street owns and manipulates it, the SEC ain't even caring about blue chip stocks worth billions in market cap, don't expect the OTC to do anything but help the MMs get rich either, imo.
