This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Trump Media and Technology Group (NASDAQ: DJT), the parent entity of Trump’s X-like Truth Social platform, the Truth Plus content streaming service, and a dedicated asset management and ETF service under the Truth.Fi brand, has raised alarm bells over a UK-based hedge fund’s just-disclosed significant short interest in its stock.
To wit, Trump Media and Technology Group has now sent a memo to the SEC, FINRA, the New York Stock Exchange, and the Nasdaq exchange, detailing “suspicious activity related to a disclosure filed in Germany by the U.K.-based hedge fund Qube Research & Technologies.”
This controversy began on the 10th of April, when Qube disclosed its short position of around 6 million shares in Trump Media via a regulatory filing in Germany.
Trump Media and Technology Group then cites Nasdaq’s tabulation of the short interest in its stock, which stood at 10.7 million shares as of the 31st of March. What’s more, as per the company’s investigation via “third-party sources,” the overall short interest in its stock, as of the 16th of April, remains “virtually unchanged.”
Trump Media then notes:
“Neither Nasdaq, NYSE Texas, nor any other source has been able to confirm when the trades disclosed by Qube were conducted or if they were conducted at all.”
Accordingly, the company now believes that its stock is being subjected to “illegal naked short-selling.”
“The above factors, especially when combined with the history of suspicious trading surrounding DJT stock—including DJT appearing on Nasdaq’s Regulation SHO Threshold Security List continuously for more than two months in 2024—could be indications of the illegal naked short selling of DJT shares.”
Over the past few months, Trump Media and Technology Group has repeatedly raised alarm bells over the purported manipulation of its stock price, going so far as to write separate letters to several Congressional committee chairs. It also called on the Nasdaq exchange and the attorney general of Florida to investigate the alleged manipulation of its stock. These measures, however, failed to yield any visible results.
Of course, President Trump retains the majority stake in Trump Media and Technology Group. As such, given the ongoing global upheaval around US import tariffs, the SEC might be more receptive to investigating Trump Media’s latest complaints, especially as they involve a foreign hedge fund.
Source: Wccftech / Digpu NewsTex