Welcome back to the channel everyone today, i want to talk about how so far this year, there's been 5.9 billion, shares of short conversions or failed to deliver transfers, basically sham resets, not just 5.9 billion shares, traded, but 5.9 billion sham resets and how even mainstream media Is now admitting to the prevalence of naked shorts so stay tuned and let's make some money, but before i dive into the video i just want to give a massive shout out the team over on the private discord there. They get urgent news due diligence and updates on amc, gamestop and cryptocurrency. Before i even make a video - and it's the best place to get in contact with me and ask me questions as i'm active there, pretty much 24 hours a day linked in the description below and now i want to dive straight in with the key information. So too long didn't read, i can prove that gamestop has had 5.3 billion and amc has had 5.9 billion shares worth of short interest, conversions or failed to deliver transfers occurring since the start of this year by the use of divorced puts now.

I have actually explained about now. I have actually talked about divorce puts many times on my channel, but this post also does a perfect job of explaining what they actually are, but first the introduction, hello motos. This has been a while in the making for what has turned out to be a relatively brief due diligence by his standards before he dives into this. This due diligence is going to be split into several parts, explaining what divorce puts actually are the methodology and how he calculated.

The divorce puts the raw data, the analysis and links to the source data as well. So, in a divorced put, you need two parties. You need your og shorter, who has either sold short shares in a company that they need to cover or has accumulated an outstanding fail to deliver position that they need to close, but they don't want to buy legit shares to do so, and, secondly, you need a Market maker, who is also very likely short on the same stock, who is willing to bend the rules a little to help out the og shorter, the og shorter, buys either deep in the money or deep out of the money, put contracts equal to their short position. From the market maker for a date far in the future, the og shorter also buys some deep in the money, call options and exercises them immediately.

The market maker then can't locate the shares to sell to the og shorter, so they can naked shorts. Some shares and sell them to the og shorter equal to their short position. Obviously, in the open market, you can't decide who you buy and sell to, but by using a combination of, put and call options dated far in the future and also ones that are either very, very deep in the money or very, very deep out of the money. You can pretty much guarantee that you're selling to the right person, the og shorter, now has a short position.

The equal amount of shares and also put contracts worth the same amount as the shares. The og shorter then uses the shares they were given to close out their short position, just leaving them with the put contracts, and the market maker also still has their naked short position as well, and then, with that, the short interest has been converted or the filter Delivers have been transferred from the og shorter to the market maker, so basically, the og shorter has a short position that they couldn't ever locate the shares for and therefore have a fail to deliver position. They buy a deep in the money, call option exercise the call option to get the shares to cover that off and also buy a deep in the money, put options separately and the market maker naked shorts. Those shares to the og shorter that they use to cover their position.

Therefore, that's left is a put contract and some naked shorts, and he says so. I've done plenty of due diligence in the past about divorce puts in regards to the open interest strikes. However, no due diligence has been done on a daily volume of puts and strikes and with good reason, and he says the only way to do it would be to open each contract relating to each strike price on each chain and check every single one. For every single day, and only a madman with no life would do that.

So that's exactly what he did now. That is an incredible claim that i checked 1 300 odd contracts and checked the dates and volume of each of those contracts as well. For roughly 1.45 million individual data points and, as my dad always said, extraordinary claims require extraordinary proof, so i recorded myself checking every contract. You can find that here there is nothing exciting in it unless you love spreadsheets and manual data entry.

Next, i had to choose how much daily volume for a contract would be considered unusual. This was a harder figure to nail down, but i eventually settled on 2 000 contracts for gamestop and 13 500 contracts for amc. The figures chosen were largely arbitrary and chosen to be safely above normal volume and if 2000 contracts is good enough for keith gill, it's good enough for me for reference. I ended up with 1 200 data points chosen and selected as unusual.

However, total of 1.45 million or 0.08 percent of all data points, and then he also covers off some limitations, such as using conservative estimates, some data that he was lacking and also the potential for human error. So this is his spreadsheet that shows all of the raw data. What this spreadsheet is showing is those shares that relate to those very, very large per option, positions that are very very far in the future and are very very very far in or out of the money and are therefore just very unusual for normal trading. Now, as you can see in january, it starts off somewhat slowly.

You've got 8 million and 14 million with a small ramp up the next week, up to 89 million and 42 million at the very start of february, and then it cools off again to the low millions and on some days, none and again that kind of continues On through february and march, with fairly low volumes, four million three million - yes, there's some larger volume days of 24 million and also many days of no volume at all as well. But then in may it starts to ramp up and towards the end of may. You have some very, very large reset days: 133 million 401 million 267 million and then at the start of june and start of july. It then starts to decline again and again through july and august - it's fairly low 2 million 3 million 5 million.

But then, at the end of august and the start of september it starts ramping up massively, especially the last week of september, when we had 884 million and 886 million. Now i think, there's two separate things that's going on here. First, obviously, we are entering cycle three and therefore the hedges are trying to do absolutely everything they can to continue pushing the amc price down, so it doesn't get too out of control and follow those expected trend lines. I've shown you a number of charts recently showing cycle one cycle, two and cycle three, which should theoretically take us to somewhere between two hundred and three hundred dollars per share, and that is obviously if it gets to two hundred or three hundred dollars per share.

And no hedges are liquidated in the process and the short squeeze does not occur, which i do think is potentially unlikely. As i do think. Many hedge funds will be liquidated at that price point and i think secondly, we've also had the introduction of the new cat system and the disposal of the old oak system and therefore fail to deliver. Resets are much harder to hide and actually have to be done and reported.

Therefore, it's so much more visible in the option chain and so much more easily detected guys before i dive any deeper. I've got a quick message from the sponsor of today's video cryptocurrency. Investing can be very risky, especially with the sheer number of rug pulls and scams we've seen over the last few months, and that's why you need a coin where the underlying value of that coin is pinned to something tangible and gsx is just that. It's asset backed with tangible gold, mining equipment and mineral rights, and that means that, as they, mine, more gold, the value of their assets increases and, as does the value of their coin and here's one of their actual mines in operation.

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And therefore, you can be confident that those assets actually exist and are also growing. And if you want to pick up some gsx coin, be sure to follow the link down in the description below but as always be sure to do your own. Due diligence as this is not financial advice, but what about the analysis? Well, both tickers show a frankly unbelievable amount of fraud in them, but we've always known this, and we've proved this time and time again, and this is just another hand grenade in that fight. One thing that applies to both tickers is that we see a major increase in divorce puts during run-ups, but that's to be expected, as it will be the time when they want down the pressure and to have failed to deliver clocks, reset and short interest at its Lowest gamestops figures are heavily stacked in january.

However, amc's figures tell us the opposite story. We do see an increase in january, but the real volume and figures don't kick in with amc until the last couple of weeks, with the 15th of september, showing just under 616 million shares worth of puts also for amc. We can see that we have scary big numbers at the start of june in an attempt to stop the run up to 72 dollars or above 72 dollars, and that's why the numbers are so so high at the moment at the end of august and in september, Because the hedges are trying to prevent another massive run-up, what's notable about both is that, on their largest date september 15th, both had puts either auto executed or end of day puts executed to such a degree that it was more than the outstanding shares of both tickers. Now i think this is super super interesting because it just goes to show that cycle 3 actually probably should have started last week or the week before, and it's just that hedges trying to throw absolutely everything that they can at amc to try and keep it down.

Now it is obviously very very expensive for those short funds to continue resetting the felt delivers in this manner. They're resetting hundreds of millions of shares per day, and they just can't keep it on forever, because it's just so expensive to perform those resets. Don't forget, the resetter is losing money on each and every transaction they're also having to pay a transaction fee, they're also having to pay interest costs and so much more. Therefore, i do only think it's a matter of time before they can't continue this practice any longer or it just gets too stupidly obvious and the sec has to step in and do something and we've also seen mainstream media acknowledging naked shorts.

With today's article on benzinger, the benzinger article says, the amount of naked shorting on amc, entertainment is not included in the number of registered shares held short and could be significant. Naked shorting is an illegal market, manipulation tactic where synthetic shares are lent between brokers and large hedge funds. Amc also has a massive amount of trading activity occurring over the dark pool. The dark pool allows financial institutions and hedge funds to trade anonymously and can be used as predatory practice.

I think it's now getting to the point where more and more mainstream media sources are actually acknowledging naked shorting and therefore, when amc does squeeze they'll, then be posting articles saying how they were right all along now. I also wanted to talk about how, on monday, we are going to see a massive jump in the altex data for the number of estimated shorts and the number of estimated short interest per cent back on the 1st of september. Estimated short interest on ortex was 86.47 million shares, but the actual data has just been released and there was actually 97.13 million shares shorted. That's a discrepancy of about 11 million shares.

Therefore, you're going to see this estimated credential interest, jump to say, 104 million and the current short interest percent of free float will jump to say: 21 22, maybe 23 as well. This will be a massive massive increase and will set a new record for all-time high short interest, legitimate interest and trading. Tigre also said it was pretty evident that there was conclusion between robin hood and citadel in his opinion, pretty sure they also claimed they had no communication during the january frenzy under oath in that lawsuit that i've covered in my previous few videos. There's a few more chat messages.

There's one here from gretchen to vlad tennis saying: can you call me or join a google me? We've got a major liquidity issue and we've pco'd amc, gamestop and other meme stocks. Pcode means setting the relevant security to position close only and there's also some more very cocky messages, saying. Ah, we will navigate through this nfcc issue. We are too big for them to actually shut us down, we're going to get crucified for pcoeing and somebody says: did we make amc and gamestop only position close only and david says yeah and he says yep seeing the channel now unfortunate rhs received a very large Call confidentially all firms on the street jim is saying, are doing the same thing.

Yeah i figured this. Is such a horrible look industry-wide? I think that is very cocky by david, saying that we are too big for them to actually shut us down and they even knew that they were going to get crucified for pc owing the meme stocks, and they still did it anyway, and this was actually all Over cnbc earlier today, robin hood executive's internal chat, around gamestop chief operating officer, gretchen howard, said a major liquidity issue on january 28th. The same day, robin hood, restricted buying of heavily shorted stocks like gamestop and amc and in response to the restrictions executives, said we're gon na get crucified and calls it a horrible look industry-wide and it was the robin hood financial, ceo, david dasso. That said, we're too big for them to actually shut us down and again, all over cnbc, not great for robin hoods guys be sure to.

Let me know down in the comments below what you think about the sheer number of sham resets and failed to deliver transfers and, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and in that notification bell, because that way, you'll be alerted when i upload a new video cheers:.