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Re: Homebrew post# 365219

Saturday, 05/31/2025 8:47:55 AM

Saturday, May 31, 2025 8:47:55 AM

Post# of 367056
Ah yes, the classic “shorts would’ve covered by now because .0001 is the bottom” argument. Cute—if we were living in a rational market.

But let’s actually examine what you're saying.

1. "Nobody would stay short at .0001"
False.
People don’t stay short at .0001 voluntarily. They stay short because they can’t cover—either due to a lack of supply, legal exposure, or synthetic positions created long ago that have no matching long. Just because something should have been closed doesn’t mean it was. Look up the concept of a trapped naked short—the position might be off the books but still active in practice.

2. FINRA shows zero shorts
Yes, and do you know why? Because you’re looking at legally reported positions, not hidden exposures through offshore prime brokers, omnibus accounts, or internalized fails that never make it to the tape. OTC markets are notoriously opaque. That's not speculation—that’s a known structural flaw in the system and has been documented by GAO reports and SEC enforcement actions.

3. “The price is already at .0001”
Right—because when there's unlimited counterfeit supply, price discovery is broken. The point isn’t “someone’s shorting it today”—it’s that someone may never have bought to close a naked short created years ago. No covering, no buying pressure, just perpetual weight on the stock. That’s what synthetic overhang does.

4. Derp-de-Derp
Congratulations—you’ve graduated to emoji-based market analysis. But while you’re laughing in all caps, understand this:

The absence of proof is not proof of absence.

Billions of shares can be counterfeited without a single FTD showing up.

And if just one name is uncovered during discovery or investigation, it’s game over.


So while you chuckle at .0001, keep this in mind: stocks that are manipulated the hardest also have the most violent re-rates when the dam breaks. And yes—sometimes it starts with one voice refusing to shut up.

Enjoy your memes.
Some of us are preparing affidavits.

Krombacher