How these criminals operate ... with trading algorithms installed to ensure the PPS continuously declines! ... Maybe 10,000,000 shares get bid on in day, and only 1000 of them get actually sold ! Quote " My company gets naked shorted by RBC and Credit Suiss every day. The issue isn't so much the short, it's their trading algorithms trying to manipulate the price of our low volume small tech stock. They will flash a bid for 50,000 shares for 1cent below the current ask. Then as soon as someone bites, they have such fast order execution, that they fulfill like 100 of the 50,000 shares before canceling their order. Then they repeat, minute after minute, flashing huge orders 1cent below market price. Driving it down, over and over trying to meet their short position. We are a small Canadian tech company, and are being destroyed by the banks and the exchange. We are struggling to complete a financing because of the chronic algorithm attacks by short sellers who know nothing about the company, and are purely executing the fuckery based on automated technical analysis because there's no regulation stopping them. My companys stock dropped 20% last week from rbc fucking around. Our CFO has written formal complaint to the venture exchange, and their response is that their current policies are good for overall liquidity. The exchanges and the banks are in it together, the incentive systems are broken, and regulation is needed badly. " Unquote
Quote So this only works on low volume stocks: In any low volume stock, you're going to have shareholders that are tired of waiting for volume to go up. Let's say there is 1 person with 10,000 shares who wants out. And let's say the stock is at $1.00. And the Algorithm takes a short position at $0.90. Algorithm then puts a bid for 50,000 shares for $0.99. The existing shareholder says "great, I'll sell my 10,000 shares for $0.99". So they try and sell their 10k shares.. but when they hit the sell button, the Algorithm is able to pull the order incredibly quickly, so only 100 of the 10,000 shares actually get sold. Then Algorithm posts another bid at $0.98 for 50,000 shares. And repeats the process Over and over and over. Maybe 10,000,000 shares get bid on in day, and only 1000 of them get actually sold. Existing shareholders see the downward momentum, and start selling, feeding the Algorithm until the stock is below $0.90, and exit their short. Then... repeat until company has no value. Again, this only works reliably on low volume stocks, and if naked shorting wasn't possible, then the Algorithm would never be able to get a significant enough short position to make the whole process worthwhile. Unquote https://www.reddit.com/r/economy/comments/ul0cl5/naked_short_selling_the_truth_is_much_worse_than/
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