Welcome back to the channel everyone today, i want to talk about the amc and gamestop share lending error and whether this was a genuine error or whether it was a fraudulent attempt by fidelity or one of their counterparties to scare amc holders into selling their shares. I also want to talk about how the hedges and institutions could possibly be front running the market crash, so stay tuned and let's make some money, and now i want to dive straight in with the key information. So you can see here it talks about the shortable shares for gamestop, but i think the exact same error or fraudulent attempt happened on amc as well. The actual number of shortable shares didn't change, but the exact same price action was seen and therefore the exact same error was occurring in amc as well.

Therefore, even though this post talks about gamestop, specifically, the exact same error happened in amc as well. We just don't know the exact share by share numbers so now that that's out the way, let's dive into the video today shortable shares for gamestop went from 1.6 million shortable shares yesterday to 13.7 million shortable shares a 12.1 million share increase. Now you might say: well, a 12 million shortable share increase, isn't huge amc has 513 million shares? Yes, i guess we do only see days of two to four. Maybe 6 million shares short of also 13.7 is quite a lot, but you also have to remember that gamestop has a dramatically lower share flow.

Gamestop's float is around 61.76 million shares. Obviously, some of those shares are shorted and therefore the shares outstanding is higher, but with a float of 61.76 million shares, 13 million shares or 13.7 million shares available to short, is over 20 of the float available to shore in amc. That'd be like the number of shares available to short, going from four to six million all the way up to over a hundred million shares shortable and the poster says, given the stock price has fallen 20 in the last five days, and daily trading volume was between One to four million shares, it's highly unlikely that all of these shares were bought back and returned. There's only been around 20 million shares of traded volume and because the price has fallen so much.

It's unlikely that 12.1 million of these 20 million shares were bought back and returned available to shaw fidelity, responded, saying: we've researched the issue with our lending services. In looking into the issue, it was found that one of the counterparties that may provide us shares the short had entered an incorrect number of shares available to shaw. Firstly, i wonder who some of those counterparties might be maybe citadel, providing shares to fidelity available to shaw that error caused the number of shortable shares to be overestimated by approximately 11 million shares, which in gamestop sense is around 2 billion dollars, maybe even higher, because it's Around 20 of the entire flow we've rectified the issue and the trade ticket should reflect the correct amount of shares that may be available to short, which is only approximately two million shares. Mumu are currently holding their biggest ever promotion.

You can currently get five free stocks worth up to three thousand five hundred dollars, each just for signing up with moomoo opening your account and making your first deposit. So i wanted to break down how you can get every single one of these free shares. When you open your moomoo account, you get your first free stock, valued up to three thousand five hundred dollars and when you make your first deposit, even if it's only a single dollar, you get your second free stock, also valued up to three thousand five hundred dollars. But if you can deposit two thousand dollars, then you get the final three remaining free shares also obviously valued up to three thousand five hundred dollars each.

So that's potentially seventeen thousand five hundred dollars that you could get just for signing up with fidelity, opening your account and making your first deposit using the link in the description below now. I want to talk about why this was a problem, how this impacted the gamestop and amc price, but also what it means for fidelity as a broker and how honest they're, really being with us, and fidelity, actually made a post to clear the air. They said, given the number of posts on this topic, we wanted to recap the activity today relative to gamestop shares available to shaw. They said today, 30th of november, our trade ticket reflected an incorrect number of gamestop shares available to shore.

After researching the volume with our lending services team, we were able to identify that the root cause was an incorrect entry of the number of shares available to short by one of our external counterparties. The issue is fixed by 12 10 pm eastern standard time. Today, the gamestop shares available to shore is now correct on the trade ticket. We can confirm, although i'm not really sure if they can really confirm the truth of this, that the number of shares borrowed never exceeded the actual amount that were available.

Our lending services team is reviewing internal policies to better understand how this error happened. We understand that you place a lot of trust with us at fidelity and we take this matter seriously. We've received many posts on this topic, so we ask that you. Please keep all comments related to this matter in this thread now the very interesting thing - and this is how gamestop and amc are related - the issue is fixed by 12 10 pm eastern standard time today.

If we look at the price action, 12 10 pm was the very, very lowest that amc and gamestop reached. Then the price rebounded back fairly quickly and fairly violently. As i said, with amc, the exact same thing can be seen, as you saw, amc opened falling significantly and had the very low of that full at 12 10 pm at 32.79. Therefore, the exact same error was happening with amc as the same error in gamestop.

It just wasn't reported in that amc shares available to shaw. So what this error actually is is one of their counterparties, fat, fingered. The number of shares available to shore or fraudulently reported the number of shares available to short, meaning that hedge funds and institutions and potentially other retail investors, could short way more gamestop at amc than they should have been able to. They were effectively illegally lending shares to shore effectively illegally without permission, re-hypothecating those shares to be lent out again and to be shorted.

That basically means that yesterday, hedges had way more volume than they really should have in order to shore amc and gamestop. The hedges. Yesterday, potentially had over a hundred million shares of amc available to shore when most of these shares have been shorted, or they don't have permission to short, and they should have only really been able to short, a few million shares nowhere near 100 million shares. Now this guy posted on reddit saying my thoughts on the fidelity incident he starts by saying i have some experience in fund administration.

You might say, hang on tom. This sounds like a very trust me bro source, but i don't really think you have to trust me. Bro, in order to understand that this error should never have happened. These hedges and institutions and trading platforms like fidelity, spend hundreds of millions of dollars on their platforms and therefore, a fat finger.

Error of sticking an extra zero or two extra zeros on the number of shares available to short, should not happen, and it should be picked up. This would be like walmart, fat, fingering and letting you have free shopping for your entire life. It just never happened. Walmart spent hundreds of millions of dollars on their systems to make sure that fat, finger errors, don't happen or they're detected and fixed before they actually reach the end customer.

But anyway, this guy posted saying i've got some experience in fund administration. I know how these numbers are shuffled from party to party from team to team. He said this error is so unlikely to happen so likely to automatically break the process chains before being officially reported that i'd bet my soul to the devil that such an error would. 100 mean that multiple different teams of individuals with different training and positions of perspective - all and i mean all of them - didn't catch the error.

This would obviously go from the junior members of team at the counterparty to the senior members of team across the fidelity back down to the junior members to be entered back up to the more senior members to be reviewed and then officially reported. It also means that multiple internal, automated and system-wide checks didn't catch their error or break the process in their system. Obviously, junior members of staff at citadel don't go in and hand count the number of shares available to shaw. They don't go around with a paper and clipboard and go oh one.

Share of amc there. One share of amc here, one share of amc. There that's three shares available to shore. It's obviously done by an automated system and that very same automated system will report the data to fidelity.

There's no one from citadel that hand types the exact number of shares in it just gets automatically emailed or automatically sent from citadel to fidelity. I don't know about you guys, but the price to build and upgrade and sustain an internal system is just a ridiculous amount of capital and regulation and checks. This doesn't just get fat. Fingered citadel has spent hundreds of millions of dollars on their algorithms and systems and therefore hundreds of millions of dollars would avoid a fat finger.

Sticking an extra zero or two zeros on the number of shares available to shore to say that it was a human error or fat finger, undermines the complexity and internal systems within the financial system. There's corporate actions, tons of reconciliations, metadata, there's regulations and checks that have to be passed it just it just wouldn't happen and therefore that's why. I think it's a fraudulent reporting of data from citadel to fidelity in order to free up more shares available to shaw and in light of the fidelity drama. Today, i'd like to remind you all that when's christian warned us all that brokers have been lending out.

Our cashiers illegally, some of you may not like where's christian because of what happened a few months ago, but i do think he's very accurate in what he says here. In an interview with dave, lauer addition to uh lending their clients margin shares which don't forget each one of you out there who signs a margin agreement, it has the that gives them contractually the right to lend your shares. Another thing that you'll see in the enforcement actions, which we've seen in cases is they're using cash account shares cash account. Shares in the states are protected by rule 15 c33 and in doing so uh that that rule says the cash account shares.

That is, shares that aren't leveraged in a margin account have to be segregated in the united states. They can't be touched. The broker can't do anything to encumber them. Well, guess what those shares are likewise being used.

So therefore, likewise christian just said, it seems that some lending platforms are actually lending out. Our cash account shares that we've marked as not lendable, therefore going against the rules and regulations and lending out shares which shouldn't have been len. I think these trading platforms aren't reporting these shares as available to lend, but yesterday maybe an error occurred, and these shares that shouldn't have been lent out were marked as available to lend and obviously have been being lent the entire time now i think amorton has made An excellent point here of exactly what's at stake for fidelity and exactly what they've done wrong. He starts by saying, as the person who asked this question in the original thread.

I hope you can see what is a risk here. He said in the best case, fidelity's processes for locating shares to borrow for shorting are completely dysfunctional without any verification of those shares actually existing. In the worst case, you are actively colluding with criminal short sellers who continuously flood the supply with fake shares. You have now the choice between protecting the identity of that responsible, counterparty and suffering the consequences, mass exodus of retail investors, or you can put the blame where it belongs and give us transparency of who entered those 11 million shares available and how it can be that There's one zero verification, two manual entry and no review and three no fail safes in your system, so either fidelity system for detecting shares.

The short is absolutely horrible or fidelity have this entire time been cooperating with criminal short sellers now. I also found it very, very strange and coincidental that fidelity is now promoting advertisements for their trading platform. Here you can obviously see the head bobbin cat, which is very very popular among retail investors, specifically amc and gamestop investors. Fidelity has been promoting this video and their platform on the amc stock, subreddit, and also the super stonk reddit and potentially many others.

It seems very, very coincidental that, just as fidelity is caught for this error or fraudulent cooperation they've now jumped on the bandwagon of promoting on social media, fidelity seem like they're trying to drown out the noise and post on their subreddit that everything's fine and we shouldn't Worry but more people should sign up to fidelity, because supposedly fidelity is the best platform. Now don't get me wrong. I do think that fidelity could be innocent in all of this and it could just be their counterparty. That's made the mistake and try to sneak it.

Past fidelity, obviously fidelity is one of the only platforms where you can buy through lit exchanges and fidelity has been the platform to go to for so many months, but if it does turn out that fidelity has been cooperating with these criminal short sellers behind our backs. I will be very, very disappointed now. This poster on reddit believes that the hedge funds and institutions are now starting to front run the coming market collapse. He said, make no mistake about it.

This is not a similarly treated and detected pandemic strain. I do respect the pandemic for what it is, but this is the 1 front running the largest market collapse in history. This is the one percent selling off some of their stocks in order to reduce their exposure to the wider market to effectively front run. The crash before it happens, the ceo of twitter resigned, the cfo of cnbc resigned, the cfo of walmart resigned, the cfo of goldman sachs resigned, something is happening and something is brewing.

It seems very, very unusual that all of these high-tier high-powered cfos are resigning. Just as the market is starting to crash, it seems unusual that it's the cfo's resigning because obviously cfos have view of all of the numbers and all of the financial statements. So those cfos are the primary people that know where their money is being hidden and what's happening to the money and anything illegal. That's going on with all the numbers.

Now i do think the us, and more specifically the world, is in a very tricky situation at the moment. Jerome powell obviously wants to end the taper a few months sooner than expected and therefore wants to stop pumping money into the us economy. But he also thinks it's time to retire the world transitory for inflation, thereby suggesting that inflation is here to stay and could be around for much longer. Obviously, with this new strain of the pandemic, it could potentially mean that the us and, more importantly, the entire world, enters another worldwide lockdown that would also cause another stock market crash and effectively would cause additional stimulus to be required by the us and world economy.

Now, obviously, that would push inflation even higher and would mean that jerome powell can't stop tapering of the fed purchases, but on top of that, jeanette yellen is still warning of recession. If the debt limit is not addressed. Obviously, jerome powell can't continue printing money and offering more and more stimulus if that debt limit is not raised and therefore could potentially cause a u.s or worldwide recession. I think all of this is effectively culminating on a massive market crash in not only the us but across the entire world, and therefore some of the one percent, those largest institutions and hedge funds are trying to get out while they still can and preserve their capital.

Guys be sure to, let me know down in the comments below what you think about this share lending error from fidelity. Do you think it's a genuine error, or do you think it's like fraudulent cooperation and if you haven't already be sure to check out the patreon and the private discord linked in the description below if you ever need any help with amc or gamestop or you need Some suggestions on other stocks or cryptocurrency be sure to join the private discord and become part of the team and, as always, guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.