(Updated Message) I personally believe, because this was a reverse merger that surprised everyone, the market makers were caught off guard with the demand for the TDGI equity.
I believe some people have a misconception that because we are bring up shorting, that there are individuals shorting it. I don't believe that at all, In fact I don't think it is individuals shorting most Small Cap Stocks. It can be done, but most likely it is the MM's creating a market. The SEC even is telling us, that the MM's are going to do it.
I believe the MM's were shorting while creating liquidity in the market for TDGI, because apparently nobody was willing to sell anything, at the time. If you look at the data, there was demand right out of the gate, that they could not supply. The day, the merger was announced December 14th they had to sell 10.5 Million shares short on 15.1 Million in Volume.
I could very well be wrong, but this is pretty telling evidence if you ask me.
DATE Short Share Volume Daily Volume
12/1/2009 Short Share Volume 0 Daily Volume 0
12/2/2009 Short Share Volume 0 Daily Volume 0
12/3/2009 Short Share Volume 0 Daily Volume 0
12/4/2009 Short Share Volume 0 Daily Volume 21,800
12/7/2009 Short Share Volume 20,000 Daily Volume 70,400
12/8/2009 Short Share Volume 0 Daily Volume 0
12/9/2009 Short Share Volume 2,380,890 Daily Volume 8,038,720
12/10/2009 Short Share Volume 1,649,406 Daily Volume 5,601,549
12/11/2009 Short Share Volume 1,354,040 Daily Volume 4,420,372
12/14/2009 Short Share Volume 10,506,879 Daily Volume 15,144,801
12/15/2009 Short Share Volume 2,653,333 Daily Volume 4,495,883
12/16/2009 Short Share Volume 1,474,500 Daily Volume 2,843,332
12/17/2009 Short Share Volume 1,967,097 Daily Volume 3,904,736
12/18/2009 Short Share Volume 2,506,923 Daily Volume 10,010,223
12/21/2009 Short Share Volume 1,173,059 Daily Volume 3,740,971
12/22/2009 Short Share Volume 535,500 Daily Volume 4,125,821
12/23/2009 Short Share Volume 4,819,752 Daily Volume 10,377,622
12/24/2009 Short Share Volume 4,446,493 Daily Volume 36,006,405
12/25/2009 Short Share Volume 0 Daily Volume 0
12/28/2009 Short Share Volume 15,482,421 Daily Volume 43,343,786
12/29/2009 Short Share Volume 7,045,198 Daily Volume 20,972,933
12/30/2009 Short Share Volume 6,566,212 Daily Volume 12,615,429
12/31/2009 Short Share Volume 5,231,353 Daily Volume 10,980,172
1/1/2010 Short Share Volume 0 Daily Volume 0
1/4/2010 Short Share Volume 4,590,844 Daily Volume 9,268,746
1/5/2010 Short Share Volume 3,414,524 Daily Volume 4,751,685
1/6/2010 Short Share Volume 3,558,075 Daily Volume 8,313,607
1/7/2010 Short Share Volume 3,147,353 Daily Volume 5,009,760
1/8/2010 Short Share Volume 2,346,384 Daily Volume 3,478,893
1/11/2010 Short Share Volume 6,697,654 Daily Volume 14,520,474
1/12/2010 Short Share Volume 1,724,241 Daily Volume 2,824,620
1/13/2010 Short Share Volume 1,286,358 Daily Volume 2,795,850
1/14/2010 Short Share Volume 1,230,401 Daily Volume 2,095,497
1/15/2010 Short Share Volume 2,775,426 Daily Volume 4,482,237
1/18/2010 Short Share Volume 0 Daily Volume 0
1/19/2010 Short Share Volume 8,318,835 Daily Volume 14,487,918
1/20/2010 Short Share Volume 3,065,889 Daily Volume 6,667,775
1/21/2010 Short Share Volume 1,702,354 Daily Volume 3,694,252
1/22/2010 Short Share Volume 1,766,044 Daily Volume 3,553,597
1/25/2010 Short Share Volume 2,219,557 Daily Volume 3,981,776
1/26/2010 Short Share Volume 388,928 Daily Volume 1,055,100
1/27/2010 Short Share Volume 2,828,380 Daily Volume 5,955,828
1/28/2010 Short Share Volume 315,900 Daily Volume 2,088,469
1/29/2010 Short Share Volume 2,146,876 Daily Volume 3,718,627
2/1/2010 Short Share Volume 2,299,456 Daily Volume 6,332,643
2/2/2010 Short Share Volume 1,467,127 Daily Volume 3,097,592
2/3/2010 Short Share Volume 1,512,671 Daily Volume 3,188,588
2/4/2010 Short Share Volume 1,138,103 Daily Volume 3,583,205
2/5/2010 Short Share Volume 720,289 Daily Volume 6,578,468
2/8/2010 Short Share Volume 8,216,470 Daily Volume 17,268,366
2/9/2010 Short Share Volume 1,535,920 Daily Volume 7,407,130
2/10/2010 Short Share Volume 1,474,598 Daily Volume 3,919,500
2/11/2010 Short Share Volume 2,577,668 Daily Volume 3,682,792
2/12/2010 Short Share Volume 1,176,898 Daily Volume 4,068,046
2/15/2010 Short Share Volume 0 Daily Volume 0
2/16/2010 Short Share Volume 2,662,760 Daily Volume 6,868,865
2/17/2010 Short Share Volume 1,079,187 Daily Volume 3,006,108
2/18/2010 Short Share Volume 1,641,900 Daily Volume 2,878,433
2/19/2010 Short Share Volume 866,700 Daily Volume 2,479,387
Read this from the SEC's website:
www.sec.gov/spotlight/keyregshoissues.htm
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board, as there may be few shares available to purchase or borrow at a given time.
Market Data 
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