Today I want to talk about how Congress is finally shutting down a legal shorting? It seems as a result of Mmtlp, Congress is finally looking into reforming both regulation Sho and synthetic shorting regulations too. So today I want to explain how that impacts AMC and what will happen to those short positions. So stay tuned and let's make some money. and now I'll drive straight in with accumulation.

So this post on Reddit starts by introducing Mmtlp and explains a little bit of the background. Obviously I've covered Mmtlp on the channel a number of times before, so I'll try and just pick out the key points. so it says there's another company in the same situation as Us, which is Mmtlp and that company went to mode with another private company making their company private as well. But it's illegal to continue to have shorts in a private company and the self-regulatory organization responsible for overseeing this staff did a bunch of dodgy things and obviously that SRO in this case is Finra, with the last major dodgy action being halting the trading of the company two days early.

so they're short buddies, never had to close, and now tons of illegal shorts still exist and have not been closed out of and the long investors are stuck in limbo. And since then, multiple lawsuits have been filed against Finra, including one from a woman who's actually practicing law now. she's super smart and was able to fight straight through their boilerplate and Frontline defense immunity claims. Now that lawsuit is still going on and the representative that Finra originally sent is basically useless, and Finra is trying to find a proper Law Firm them to actually represent them.

And Retail investors in Mmtlp got so loud that even a responder from the FBI said they've been getting tons of communication about the matter and that everyone not just in the FBI knows about it and it's trying to figure out what's going on. Those retail investors also made some Freedom of Information Act requests regarding the events leading up to the hull, which three months later actually came back and made matters even worse for that SRO which is Finra. It shows that Finra knew there was Heavy fraud beforehand and then decided to Halt things and become accomplices to it all. and the SEC was also aware of it.

and the SEC and Finra's fraud teams were both in communication and both knew of the issues surrounding Mmtlp. and now Congress has also subpoenaed. Finra and a representative from Finra tried to plead the fifth directly to Congress citing the ongoing lawsuits and now it's got to the point where Congress is now looking into reforming regulation Sho and those synthetic Short Selling regulations too. Now that obviously is not only just a good course of action, but potentially the best Court of action because it's something that will impact Market Wide, it won't just impact Mmtlp, but it'll also impact AMC and GameStop as well.

Now, obviously, the SEC did suggest they wanted to reform regulation Sho, but obviously got nowhere fast because the SEC is effectively paid off. So hopefully Congress can actually go one step further and actually Force some new regulations through the house to change a regulation sh0 and those synthetic shorting regulations that would obviously massively impact AMC and the availability to create and renew those synthetic shares. If these shorts could no longer Kick the Can and reset those Ftds and reset those synthetics and could no longer create new synthetics that effectively lose control of AMC, they'd no longer be able to suppress AMC keeping the price down and the price would steadily grind its way upwards until these hedge funds end up failing their margin requirements and end up being liquidated. And as a result, S3 Partners is saying that AMC and GameStop have the highest short squeeze potential in the entire Market guys.

Be sure to join me over our moon with a sponsor of today's video. By signing up using the link in the description below, you can currently get up to a whopping 15 free shares entirely commissioned free trading Free Level 2, Market data and most importantly of all, there's tons of technical indicators Advanced Charting, tools and memory is very, very easy to use and it's very, very clear. and with movie you've got free 24, 7 customer support. and you can also trade around the clock with the full extended trading hours.

And they've said, as the broader stock market has been on a tear for about a month, things are looking groomed for entities with major short positions in stocks like AMC and GameStop And that's because obviously these hedge funds have begun to cover their smaller short positions in other stocks like, say, a firm upstart and many others, but are trying to save their short positions in AMC and GameStop until the very end because they know that they may lose 5 or 10 million dollars. closing out of their affirm short positions. But closing out of AMC and GameStop would cause the squeeze bankrupting not only their fund, but potentially the entire hedge fund industry. And we can see from this list from S3 partners that they're giving both GameStop and AMC a 100 out of 100 squeeze score, practically guaranteeing that both of these stocks will squeeze.

Not only have they given these stocks 100 out of 100 on the score, but we can also see the short interest in both GameStop and AMC is absolutely ginormous. Not only that, but remember this is only the legally disclosed short positions in both AMC and GameStop and doesn't include all of those synthetic shorts on top. He says today, both AMC and GameStop have a high short interest of 26.69 for AMC and 20.73 for GameStop and AMC's short interest was only 25 when it surged to its all-time high of 72 dollars per share back in June of 2021, legally disclosed short interest did drop to 14. a short sellers hid their short positions through 2022, but through 2023, that short interest has popped right back up.

But now two years later, GameStop is finally a profitable company and AMC Entertainment, the largest movie theater chain in the world, continues to innovate and creatively raise cash with a mission to erase its debt and become profitable as well. And therefore ehore from S3 Partners is saying that hedge funds actually face a big risks and he also said that one factor that's also killing profits for short sellers is the borrowing costs on stocks that no one is willing to part with and the stock. The figures highest on that list is AMC AMC currently has the largest cost to borrow of all heavily shorted Stocks by an absolute country mile. currently being reported as 928 short sellers want to short the stock, but they're not able to get a stock borrow, locate and therefore cannot execute their shore on the street.

Obviously, since these FTX synthetics and now these bittrex synthetics have been closed down, these shorts are desperately struggling to locate real shares of AMC to avoid those false locates. and they're so desperate to try and avoid those illegals locates, they're paying over 900 per year as borrowing fees. But it's not just Ehore from S3 Partners That's saying that AMC and GameStop has massive short squeeze potential because the interactive brokers Chief strategist Steve Sarznick says there's a big demand to sure AMC Entertainment, and he says that AMC is in a very special situation because the proposed merge between Ape and AMC shares and he therefore realizes that because of this special situation, AMC is a ticking Time Bomb for shorts AMC is now also showing as non-shortable on interactive Brokers for the first time in two years. this user said for more than two years now I've tracked the fee Ray and available shares to shore on that account for AMC GameStop and for Ape as well and he said until now when the shortable shares number for AMC dropped zero, it was marked as maybe shortable.

Hence, it was a hard to borrow stock, but for the first time since the January 2021 run, AMC has zero absolutely zero shares that Brokers can locate for Shorts to borrow, and therefore the stock on Interactive Brokers is not shortable. I Think this really shows that right now we are closer to the 2021 run-ups than we've ever been and I also wanted to touch on something for one of my previous videos the other day about the proposed partnership between Elon Musk and Adam Aaron from AMC Obviously, I said in that video that Elon Musk wants to create X the Everything Company which is likely to be a combination between social media and investing platform, a platform where you can play games and everything else in between. And now it seems that Twitter has just announced a partnership with Etoro, a stock trading platform. It says you'll be able to view interactive charts and trade stocks from your very own Twitter account and Elon Musk has also announced saying that he wants Twitter to be the biggest financial institution in the entire world.

He doesn't just want Twitter to be the biggest social media platform, he wants Twitter to be the largest financial institution. And therefore, ultimately Elon Musk wants Twitter not just to be an investing platform, but to effectively be a financial institution or even a bank as well. And I think a brilliant move for Elon Musk in this situation will be to partner with none other the name c. That way AMC could reach balance its debt very cheaply and become profitable with the help of Elon Musk But guys, be sure to let me know what you think down in the comments below.

As always, guys, be sure to ding that notification Bell because that way you'll be alerted. why not upload a new video? Cheers!.