Truth Social, the social media platform launched by former US President Donald Trump, has seen its stock come under intense pressure from hedge funds and short sellers. Hedge funds have been betting against the company's success, driving down its stock price.
According to recent data, short interest in Truth Social has increased significantly, with a notable spike in short selling activity in the past few weeks. This surge in short selling has put additional pressure on the company's stock.
The pressure from hedge funds and short sellers has been relentless, causing the stock price to drop.
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Key Takeaways
Shares of Trump Media & Technology Group (DJT) surged over 9% after the company warned about potential market manipulation.
The company's CEO, Devin Nunez, sent a letter to Nasdaq CEO Adena Friedman highlighting four market participants responsible for over 60% of the extraordinary volume of DJT shares traded.
These four firms are Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.
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Trump Media & Technology Group's stock was the most expensive to short on April 3, according to a report, which means brokers have a significant financial incentive to lend non-existent shares.
Trump Media & Technology shares closed 9.6% higher at $36.38 on Friday.
Here are the four firms responsible for over 60% of the extraordinary volume of DJT shares traded:
- Citadel Securities
- VIRTU Americas
- G1 Execution Services
- Jane Street Capital
Trump Media and Hedge Fund
Trump Media & Technology Group, the company behind Truth Social, is accusing a London-based hedge fund, Qube Research & Technologies, of suspicious trading activity.
Qube Research & Technologies has disclosed a vast bet against Trump Media, with a position of almost 6 million shares.
Short-selling is a way of betting against a public company, where an investor borrows a stock, sells it, and then buys it back at a lower price to pocket the difference.
The total short interest in Trump Media was 10.7 million as of March 31, according to Nasdaq.
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This is a significant amount, and Trump Media is claiming that it could be an indication of illegal naked short selling of DJT shares.
Shares in Trump Media rallied by about 7% in New York on Thursday, after Trump Media urged regulators to investigate Qube's trading activity.
Here are some key facts about the hedge fund's bet against Trump Media:
- Qube Research & Technologies has a position of almost 6 million shares in Trump Media.
- The total short interest in Trump Media was 10.7 million as of March 31, according to Nasdaq.
- The hedge fund's bet against Trump Media is valued at around $105 million.
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