Today I Want to talk about the reverse split that just caused a giant short squeeze over the last few days and also a number of other recent splits that also cause short squeezes over the last year or so, these squeezes occurred directly after a reverse split within days of the split taking place. So stay tuned and let's make some money. And now I'm going to dive straight in with the key information. So Caesar tweeted saying Iron performed a reverse split one for ten and also changed its Q-sip number today as of the 30th of December at this very moment of the Tweet it's up 1185 on the day and that's not even the top you can see here on Weeble Iron performed a corporate action of a one for ten reverse split on Friday December 30th, 2022 Gmtx also performed to take a change to Iron on the same day.

Basically, they performed a reverse split and also a ticket change to change the Q-sip number. I also changed its corporate name to Disc Medicine Incorporated on Friday December 30th as well and changed its Q-sip number as well. And we can see from this screen show that Iron was up from 1.35 cents all the way to 17.35 on the day or a 1185 increase. Now, if AMC performs the Ape AMC conversion and then performs a one per 10 reverse split, the stock price will be somewhere between 20 and 40 dollars per share.

If it then experienced a 1185 increase, AMC would be trading somewhere around 200 to 400 per share. and obviously this would just be solely on a day of the split, let alone what happens on the dates following and on top of that, Nate Tweet is saying correct me if I'm wrong because this Q-sip stuff is not my expertise, but this is what happened to Iron. He said this forced the shorts to cover only 1.4 million shares. iron actually had a very small short interest and there was only 1.4 million shorts that needed to cover.

and he says now, AMC has 108.5 million shorts that are legally disclosed and likely has many, hundreds of millions, if not billions of shorts illegally created through the synthetic shares on top of that. So if 1.4 million shorts closing their position can cause a 1165 run, imagine what can happen after 108 million? AMT Shorts need to close, if not hundreds of millions or billions. But it's not just that because Tony Dinaro also tweeted a number of other reverse splits that have happened recently that also caused Giant Runs Tony tweet saying we know of hundreds of failing penny stocks that didn't do well after a split. but I sorted recent reverse splits for companies with a market cap over a billion dollars.

Basically, what Tony Dinaro is trying to find is companies that are not penny stocks that have recently performed a reverse split. Obviously, OTC stocks that perform reverse splits typically don't do well because the ODC Market is not regulated whatsoever. You could say the SEC simply ignore the crimes that happen on the New York Stock Exchange and the NASDAQ, but at least it experiences some further regulation compared to the OTC markets. Well, they can seemingly rate Millions if not billions of synthetic shares on the New York Stock Exchange.

There's seemingly some things they can't do, as obviously the regulation on the New York Stock Exchange is slightly better now. Tony Said There's actually many companies that have performed reverse splits with a mark cap over a billion dollars, But here's a couple of results for you to dig through now. Firstly, we have the Ovv stock that's performed a reverse split somewhere around 2020 at 1.98 per share. Now, this stock had a fairly small run up 191 percent to a high of 62.41 Now, this is also fairly close to its current price right here at the very end of December or the very start of January, so it seems that this stock actually hasn't fallen after a short squeeze.

Also, remember that this price of 1.98 is actually the price after the reverse split. If this stock did a reverse split of 10 for one, it would have been trading around 19 cents pre-split and 1.98 post split. and then obviously over the next few months, it's steadily scores from 1.98 all the way to a high of 62 dollars. And the next example that Tony provided is the stock FL and G.

This had a reverse split somewhere around 92 cents and then increased all the way to 38.24 Now that is a 2448 gain after the reverse split. Now at 2440 increases the same as AMC going from 30 post split to one thousand four hundred and forty six dollars post squeeze. Now as I said, remember this: 92 cents is their post split price AKA pre-split that would have been trading at nine cents and post split 92 cents, but it obviously had a very quick same-day run-up and then a fairly slow squeeze after that all the way to 38 dollars and 24 cents. Again, we've got another example of Codx stock that increased from one dollar and fifty cents all the way to a high of 57 and 20 cents a 1 666.99 price increase.

and Tony's final example is the stock Edu which increased from eight dollars and forty cents to a high of 42.19 an increase of 175 percent. Now, obviously that's just a few examples, but it does show that stocks over a billion dollars of market cap AK stocks that aren't penny stocks actually have a fairly reasonable response to a river split, But he does say that it's not to imply that every company over a billion dollar market cap did well after a split because some went down as well, but he says we shouldn't focus on Penny Stock failures. He said, you have to start by comparing something compatible. Every split or reverse split is a company and fundamentally specific.

Obviously, all companies have different fundamentals. They have different technicals. They're all different companies and will likely react in different ways. Some stocks may be heavily shorted, some might not be heavily shorted, some might have examples of synthetic shares, and some might not have any synthetic shares.

But what it does show is that actually many stocks do squeeze off that are ever split with varying degrees of success. Some increase only by 200 percent, but some increase by two thousand. Four hundred percent. Now I Think part of the reason why these stock squeeze after a reverse split is a result of the Q-sip change.

As Mr Kilo pointed out, he's got a screenshot from Finra that says a firm may sell an incorrect Q-sip from a customer's account or close out of a short position and subsequently cancel the trade after the settlement day. Now, it does say on the Finra website that it's specifically applicable to Municipal short positions not necessarily applicable to all short positions, But I Do think it's still worth a read to see how the Q-sip change actually affects short positions. Now on a Finra website, its heading says identifying and resolving firm short position. He says Finra has observed that most Municipal Shore positions AK not necessarily all shorts are inadvertently and may result from Branch or trading errors duplicate transactions, the sale of a security in the process of a partial redemption or a partial call or a delay in delivery of the Securities from a counterparty.

In addition to the scenarios explained above, two common situations that may cause short positions are described below. This is: a firm may sell an incorrect Q-sip from a customer's account and subsequently cancel the trade after the settlement day. However, the firm has already delivered the security to the counterparty and it's no longer available in the market to affect a buy-in. leaving the customer with a long position that identifies to a firm short position.

Now, obviously, when the Q7 has changed, that short position no longer relates to the new company or to the new Q-sip Therefore, that short position can't be transferred or changed, it just simply has to be closed out and the underlying shares or synthetic shares have to be canceled. Therefore, the closing of the those shorts and the canceling of the no longer applicable Q-sip number is effectively what leads to that run up in price. And it seems this combined with the FTS collapse is already causing the Shorts to begin to panic. As Binghams tweeted he said, ouch, it sucks to suck.

We can see that AMC current cost to borrow rate has increased again, not from 104, not from 114, but to 128. Right now, these Shorts are paying over 128 on average per year to maintain their current AMC short positions. When you factor in, the ape is about to combine with AMC and a reverse split is about to be performed. And the fact these hedge funds have to hold 150 margin on their short positions, we can see that shorting AMC is about to become at least 10 times more expensive, especially when you factor in these massive borrowing costs.

If a fund is currently shorting 10 billion dollars of AMC shares, they'll need to pay at least 12 billion dollars per year in borrowing fees. On top of that 12 billion dollars in borrowing fees. To take out that 10 billion dollar short position, they would have had to post 15 billion dollars in collateral. And obviously if the price does run up by a thousand percent or more during the reverse split, These funds are going to have to post at least 150 billion dollars in margin and they're going to be paying at least 120 billion in annual borrowing fees.

I Also think it's very interesting to look at the Obv for EMC for Credit, Suisse for Tesla and for Amazon We can see with Amazon. Over the last year as the price has been decreasing, the Obv has been Fallen as well as shareholders have been selling out of the company. We can see the same with Tesla the price has decreased and shareholders have been selling out during this decrease hence the falling Obv in line with the falling share price. and again with Credit Suisse we can see the falling share price and the falling Obv as many shareholders are selling out of their credit Suite shares.

But with AMC we have seen the declining price. but we have not seen a falling Obv at all. Shareholders are still holding their AMC shares. The price of AMC has simply been falling due to these ladder attacks and due to the hedge fund manipulation.

but there's still hundreds of millions if not billions of shares of AMC currently being held and on top of that hang loosest tweet is saying wow, it only took retail just three months to buy more than 10 of the entire GameStop free flow and to DRS their GameStop shares. He said that number is more likely to be 20 of the float Plus because that 10 calculation is just the people that hold GameStop that choose the DRS their shares and especially because those people that choose the DRS their shares typically only the RS half. Therefore, if 10 of the entire float was locked up in only three months, you can imagine at least 20 of the float was actually purchased. As many GameStop return investors don't DRS their shares or don't DRS all of them.

You can see from the GameStop AQ it says as of April 30th 2022, 12.7 million shares had been directly registered. but as of July 30th 2022 AK three months later or technically four months, it says 71.3 million shares of our class a common stock had been directly registered. Now, obviously, you have to factor out that three for one spliter and that GameStop issued. but if you factor that out, that's still around 18 million pre-splivered shares.

Basically meaning that retail investors increase their Holdings from 12 million shares up to 18 million shares, buying 6 million pre-splive it and shares for roughly 180 million dollars I said. But what's even crazier is that since October institutions and ETFs Sports 60 million shares which is 25 of the flow, is it? Somebody please explain to me how 40 to 45 of GameStops totally issued shares and totally issued flow has been bought and the arrest in the last nine months. Somehow, 40 to 45 of the float has been traded and purchased in the last nine months. But yet, stock price is down almost 50 percent.

He said, whether you like DRS or not, it's absolutely refreshing to have an official company provider data source showing us just how many shares are being bought by retail investors. but he said it's an absolute scam to see all of this buying while the price actually decreases and he said it's undeniable proof that markets are being controlled in a way to suppress true price. Discovery for all to see in a very easy to spot way. It's clear to see the manipulation is ongoing, not just in the EMC stock, but in the GameStop stock as well.

GameStop retail investors have bought hundreds of millions of dollars worth of GameStop shares, but yet the share price is down over 50. But maybe the AMC reverse split will fix all of this due to the change in Q-sip number that will cause these shorts to cover. And as Tony Dinari tweeted Anna Caesar tweeted with iron it seems these reverse splits do actually cause a short squeeze, but guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I upload a new video.

Cheers!.