so yesterday somone bought 1M at .0001. 100 dollars. now the ask I'm unsure if it moved since the MMs and algos typically start the ask at 540M and creep it up over the day to 650M
so maybe someone wiht a GTC at trip 1 filled the 100M slap. my guess that is the case cuz the liquidity of UBQU is ....non existent.
there is no microsecond where the algo can go oh let's use PFOF on UBQU to quickly get a profit on that trade.
so someone, maybe even a retailer, got that hit. my guess is it probably went to citadel or virtu.
but TODAY we get a SELL of 1M down to 000001. if it's not a fat finger mis-mark, it's the task of an algorithm. a regular human MM would go ....sell to 000001, why?
but I think a computer just gotta do what it is programmed to do. and all algos on all stocks for the best MM profits want to either close the stock even or down.
so I think one computer said to another MM computer, hey, let's balance this.
now here's where if I'm right, this is important.
remember about 6 months ago when UBQU was the most short sold stock on the OTC? sylvia mentioned it.
anyhoo, it is 100% LEGAL to 'short exempt' stocks for MM purposes.
what this means is say there are buyers for 100M shares of any stock....like...movie stock.
and the MMs which are hugely SHORT on that stock don't have any long to sell or if they did they would need to sell at 100 dollars a share perhaps to make it profitable for THEM.
but there's a 100M ask slap. what to do what to do. in a FAIR market, well movie would squeeze
but there are legal rules in the name of "Market liquidity" for MMs to sell "short exempt" just sell those 100M shares at market price and get them back 13 days after the fails to deliver happen.
in fact dougie fresh BRAGGED about this, how short exempt is a GOOD thing so retailers can get their shares! (of course retailers want rules of true supply and demand so dougie is basically selling FUD)
ok so on UBQU. you got citadel and VIRTU as most often biggest bidders on the stock, and my guess CITADEL and VIRTU being the two largest market makers probably have a LOT of the UBQU float.
so bluey? you question....why wouldn't even if they wanted to smash it to 000001 why wouldn't citadel or virtu just sell that 1M shares to 000001 from the ask? say virtu sells to citadel. unsure if both can be on the 000001 ask cuz they might risk a cross-trade but my guess is down here in cellar box land none of these rules apply to wall street...just like no SEC rules apply to the big stonks.
so my guess is since I don't think there is a HUMAN wasting any time market making UBQU it's all computers. the MMs are busy shorting big memes or watching prawn with their SEC lackey, nobody is sitting at an OTC table watching UBQU would be my guess
so I think that 1M sell today was a computer who doesn't give an s about selling 1M for a dollar "balancing" our PPS and balancing the 1M bought yesterday. that's my guess.
multiply this by....even 1-5M shares per trading day...you got a LOT of short exempts sold on the share structure. failure to delivers? who cares? there's no cost to borrow on PENNY stocks. heck schwabbie is in colluzhion with kenny at citadel on so many things right now their crypto exchange. (crypto in hands of non citadel/Jp morgan BAD....crypto in hands of JP morgan and citadel GOOD, you might have noticed the shift)
so I'm sure the slob has little care that a nobid penny stock might have millions to billions of short exempts with no interest and no real care of the SEC to ever rectify.
... until say...UBQU gets a name/CUSIP change, gets aquired, goes public, mergers with IMTL, ....reverse splits.....
and that's why I think there might be more shares short and screwed up in UBQU's share structure than what would happen in a "Fair" market.
