Replies to post #170259 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[z4lover]

They can be on there for a while but we know by the rules and regulations that

"C. Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days

Even when broker-dealers close-out delivery failures, a security may remain on an SRO's threshold securities list for longer than 13 days. Examples of why securities may remain on the threshold securities list:

1. after broker-dealers close-out all delivery failures, the security stays on the threshold list for five consecutive days;

2. new delivery failures resulting from long or short sales may have crossed the threshold, keeping the security on the SRO's threshold securities list; or

3. the delivery failures at NSCC may have been established prior to a security's appearance on the SRO's threshold securities list, and are grandfathered from the close-out requirement of Regulation SHO."


The only reason that applies to SPNG at this point being 2.

It is highly unlikely that the shorts are going around to new BD's and creating new short positions that are creating FTD's...

Which would leave us with these were shorts that were hidden that are now some how being uncovered.

I'm still working on how exactly the company is uncovering these positions but it could be they are starting to pull a great deal of certs, of which short positions were somehow attached to...