what is ftd?

If the point of sharing that article is to share about ftd, then it isnt really a new thing.

Its just indicative that theres naked shorting. I fail to understand if there is anything new from this info that wasnt raised before.

I suppose its good that it happened to a smaller company instead of a systemically important financial institution.

The problem is, suppose I (having mastered these loopholes) start using the system’s “forgiveness” strategically? Suppose I find a company that is likely to need capital to expand, or simply survive, in the near future? They plan on raising that capital by issuing shares of stock to the public (there is no crime in that: for example, lots of young pharmaceutical companies sip at the capital markets for years as they get going).  Imagine that I target one of them, and deliberately go out selling that company’s shares into the marketplace, yet instead of delivering stock, I deliver nothing but IOU’s. I flood the market with them, always standing ready to sell more than anyone wants to buy. My IOU’s are anything but temporary: they drift around in the market for weeks, months, and eventually years. If anyone gets mad and tells me that I have to deliver real shares against one of the IOU’s I sold, I say, “Sure, I’ll deliver shares against that IOU,” but what I deliver is … just another IOU. Eventually I flood the market with so many IOU’s that people end up reselling them, and they go and on until there are more share-IOU’s bouncing around than there are actual shares.

What will the effect be on the price of those shares? If I have chosen a company like, for example, IBM, the effect will be negligible (just as in the example of the preceding blog, if the hedge funds brought their money machines to Paris and printed off 100 million “temporary” Euros to spend around France and Germany, it would not cause any real harm before they bought them all back as they departed).

But remember how the hedge fund managers destroyed the economy of St. Smallcap, so that the “temporary” currency they had issued could be paid off in the end for next-to-nothing? Similarly, if instead of choosing IBM I choose a tiny company, and I generate more IOU’s than there are shares of stock in the company, then the market in those shares will crack just as surely as $100 million of fake currency would crack the tiny island economy of St. Smallcap. Once cracked, the stock becomes next-to-worthless. And if I manage to issue enough IOU’s in my target company’s stock that it cracks and becomes near-worthless, they become barely an obligation at all. Who cares about millions of IOU’s, if those IOU’s are for something with infinitesimal value?

I walk away with my winnings. The company, however, is in a fix: they planned on issuing stock to raise capital, but now their stock price has been destroyed through my manipulations, and they cannot raise capital. Maybe they run out of funds and disappear, or maybe they go into hibernation mode in order to nurse what capital they have. In either case, society is deprived of the output and the jobs that would have existed were it not for my villainy.

It may be hard to believe, but such loopholes really do exist (I will be explaining several of them in subsequent blogs). In reality, however, neither you (if you are like most Americans) nor I can actually use them.  Only large hedge funds and broker-dealers can access these loopholes to create IOU’s (just as, in the story of St. Smallcap, only hedge funds were allowed to own the currency machines with which to print off that “temporary” currency).  As we will see in more detail, these hedge funds and broker-dealers have learned how to manipulate these loopholes in the stock settlement system so as to flood the market with over a billion IOU’s (maybe many billion) in hundreds of companies. In doing so, they have disrupted the market for shares of companies that are researching cures for cancer and other illnesses, figuring out how to make blood substitutes to treat cases of acute blood loss, and building mine-resistant vehicles for troops in Iraq. Hundreds of such corporate “St. Smallcaps” have been damaged or destroyed. Thus, cancer patients are being deprived of treatments, accident victims are dying of acute blood loss, and soldiers in Iraq are dying from IED’s, so that some hedge fund ass-clowns can drive new Ferraris.

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Looks like I may be right about this being a likely Money Scam via r/Wallstreetbets because Gamestop/GME share price closed today at US$225 = a BIG drop from Friday's close of US$325.

Pity those online Retail investors who bought at >US$300 per GME share on Friday seeking to revenge against the HF short-sellers by manipulating the shares towards US$1k or even towards US$100k per share = kena gamed and stung = Gamestung. 
....... Similarly for those who piled into Topglove stocks via r/Bursabets.

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P S - Seems, got a few online Retail investors have betted against those on r/WSB by short-selling GME shares at >US$300 on Friday and today.
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the share volume 1 mean what? 1 shares?

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Today - Friday, 12 Feb 2021 NY time, GME/Gamestop share price closed at US$52.40, from its yesterday's close of US$51.10 = no surge in price because of Melvin Capital/HFs needing to close its/their short-selling positions.

I see this as BIG Shark manipulators, eg HF and MF, fixing the price at around US$50 per share, so that they can still sell their US$5 GME shares bought a few months ago, to remaining gullible Retail investors at US$50 = a 1,000% profit, eg those Gamestonk Retail investors hoping for a 2nd short-squeeze or for a wild exuberant Tesla/Bitcoin-like rally towards US$1,000 per GME share.
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Looks like, the Gamers got gamed by Hedge-funds/Mutual-funds, who are  laughing all their way to the banks.

GME/Gamestop share price closed today at about US$40, from its previous close of about US$45.

In the Free Markets of democratic countries, it's mostly Caveat Emptor or Buyers Beware.!  ... = not a nanny-state. There is no cure for Retail investors' foolishness/stupidity and gullibleness = "survival of the smartest/fittest and death of the dumbest/weakest".
....... Communist countries or nanny-states tend to keep their dumbest/weakest people around = a drag on society and the economy, eg NKorea.
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Melvin Capital is a profit-based HF. You believe in them saying they lost US$8 billion in Jan 2021.? I'll only believe it when I see their Annual Financial Report showing such a loss.

Let's conservatively say, US$20,000 X 10 million gullible Retail investors around the world like yourself = US$200 billion of profits for the HF/MF. There was a screenshot here showing someone lost his life savings of US$140,000 in this GME fiasco.
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How high is the borrowing cost now? Last i checked it dropped to less than 2% p.a.

20k is big losses? Okay...

Meanwhile Melvin capital lost 8 BILLION or half of their company in January. Isn't a big loss ya? LOL..

Mind you, they still haven't fully exited their short position yet.

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There are many hearsays or rumors going around. .......

https://www.wsj.com/livecoverage/gamestop-s...eddit-robinhood
Melvin's Plotkin: Options Trading Drove GameStop's Stock
By Gunjan Banerji - 12 hours ago

Melvin Capital's Gabe Plotkin said that options activity appeared to be a bigger driver of GameStop Corp.'s wild stock moves than short covering.

Options trading tied to GameStop hit a high during the recent frenzy, and many said that hedging activity tied to the stock on behalf of options dealers helped stoke volatility in its shares.

"I really think the biggest driver was the aggressive options activity," said Mr. Plotkin.

Bearish bets tied to GameStop have dwindled since the start of the year, data from IHS Markit shows.
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What you mentioned about Melvin Capital may be a scripted scenario to bait and trap gullible Retail investors, like the acting in a scripted movie or TV show - typical of pump-and-dump schemes. Did you believe also in the Ponzi scheme of Bernie Madoff or in the Nigerian Prince inheritance Internet scams.?
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lmaooo.. do you even know how to do maths??

20k in GME stocks, even at their highest ever price of 400USD per share will get you 50 shares of GME stock. If 10 million retarded retail investors bought 50 shares at 400USD per share, that is equivalent of 50million shares being held.

Problem is, there are only 45million shares available.. even less than that considering long term holders and the majority of people certainly didn't invest into GME at the highest price but instead, around 20-100 price range.

So how the fuck did you arrive at your stupid assumptions and figures? LOL
worship is one thing. Not making any sense in his posts is another. LOL..

They haven't fully covered their positions. There's so much DD in GME right now, it's the most researched stock on the market.

Just google anything about it and a very technical analysis on GME can be had for free.

lmaooo.. do you even know how to do maths??

20k in GME stocks, even at their highest ever price of 400USD per share will get you 50 shares of GME stock. If 10 million retarded retail investors bought 50 shares at 400USD per share, that is equivalent of 50million shares being held.

Problem is, there are only 45million shares available.. even less than that considering long term holders and the majority of people certainly didn't invest into GME at the highest price but instead, around 20-100 price range.

So how the fuck did you arrive at your stupid assumptions and figures? LOL
worship is one thing. Not making any sense in his posts is another. LOL..

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Afaik, a GME share can be loaned out many times to short-sellers = 45 million available GME shares can become 90 million shares, ie 100%. .......

https://www.fool.com/investing/2021/01/28/y...over-100-heres/ - Yes, a Stock Can Have Short Interest Over 100% -- Here's How - 28 Jan 2021

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https://fintel.io/so/us/gme?__cf_chl_jschl_...aeuLCJxghH7gbQg
" GameStop Corp. (US:GME) has 491 institutional owners and shareholders that have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC). These institutions hold a total of 109,457,322 shares. Largest shareholders include Fmr Llc, BlackRock Inc., FDMLX - Fidelity Series Intrinsic Opportunities Fund, Melvin Capital Management LP, Vanguard Group Inc, Senvest Management, LLC, Susquehanna International Group, Llp, Maverick Capital Ltd, Morgan Stanley, and Dimensional Fund Advisors Lp. "
It's likely that most of the above Institutional investors have dumped their millions of US$5 GME shares(bought in Aug 2020 or earlier)  at end Jan 2021 to millions of gullible Retail investors at >US$100 per share.
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Thats 500 million shares btw, not 50 million using his assumptions and figures
lurkingaround

Bro, the numbers are from your own mouth, tell us how the heck are you able to buy 500 million shares when only 79 million shares are outstanding, but institutional investors are holding 100 million shares??

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I was just giving a ballpark figure of 10 million and US$200 billion profits, which I admit was quite over-estimated.  Like Liamness who bought only 20 GME shares, a better estimate would be an average US$10,000 loss per Retail investor and 4 million of them = US$40 billion profits for the HF/MF during the week of 26-29 Jan 2021.
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Actually, a better estimate would be if the HF/MF managed to dump 60 million of their GME shares(bought for about US$5 per share in Aug 2020 or earlier) onto gullible Retail investors(= Gamestonkers) for about US$305 per share during the pump on 26-29 Jan 2021, their profits would be  about US$18 billion.
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https://stockzoa.com/ticker/gme/
[attachmentid=10793783]
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Seems, as of Sep 2020, Melvin Capital owned 5.4 million GME shares. If so, why would MC short-sell GME shares in Dec 2020 and early Jan 2021.? Even if it did, wasn't its short-sell already covered by the 5.4 million GME shares it owned.?
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Your data just means that Melvin Capital has sold or dumped all its 5.4 million GME shares to gullible Retail investors very recently, eg on 26-29 Jan 2021 when GME share price was >US$300 = MC made huge profits from the sale.
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Latest filing on 16 Feb 2021 shows that MC took a 6 million Put options on GME shares on 31 Dec 2020 when GME share price was at around US$20 (yesterday closed at US$40) = no great loss to MC, ie only lose on the price of the Put options X 6 million, but it will be profitable if the GME share price drops below US$20 in the coming weeks. .......

https://www.investopedia.com/terms/p/putoption.asp
" What Is a Put Option?

A put option is a contract giving the owner the right, but not the obligation, to sell–or sell short–a specified amount of an underlying security at a pre-determined price within a specified time frame. This pre-determined price that buyer of the put option can sell at is called the strike price. "

https://www.dummies.com/personal-finance/in...-stock-trading/ - what-to-consider-when-buying-put-options-in-stock-trading
"When you buy a put option, you’re hoping that the price of the underlying stock falls. You make money with puts when the price of the option rises, or when you exercise the option to buy the stock at a price that’s below the strike price and then sell the stock in the open market, pocketing the difference. By buying a put option, you limit your risk of a loss to the premium that you paid for the put."
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P S - GME Put options cost about US$0.005 per share. MC's 6 million Puts cost about US$30,000 in losses if not exercised.
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