Suggest that other causes are possible:
A trap for "Naked Shorts",
A trap for Regulation M Rule 105 violators,
an identified violation of either of the above.
"Regulation M Rule 105
Amended Rule 105 makes it unlawful for a person who sells short a security that is the subject of an offering to purchase in the offering from an underwriter or broker or dealer participating in the offering if the short sale occurred during the Rule 105 restricted period.3 Generally, the Rule 105 restricted period is the period which begins the five days before the pricing of the offered securities and ends with such pricing.4 Alternatively, the restricted period begins with the initial filing of a registration statement or notification on Form 1-A or Form 1-E and ends with the pricing. The rule is designed to prevent manipulative short selling just prior to the pricing of a follow-on or secondary offering and to facilitate pricing based on the natural market forces of supply and demand. Rule 105 is prophylactic. Thus, its provisions apply irrespective of a short seller's intent."
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