Welcome back to the channel everyone today, i want to talk about the entire naked shorting game plan that hedges have been using to try and bankrupt amc. I also want to talk about the potential true float of gamestop shares, 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 to the 4 700 of you that have currently ding that notification Bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below subscribe to the channel and ding that notification bell. If you haven't already so that you don't miss another video. Just like this one and just a quick one before i dive in with the key information, if you didn't already know, you can always become part of the team and join the private discord there.

You get urgent news due diligence and updates about amc, other stocks and cryptocurrencies. Before i make a video and it's the best place to ask me a question, 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 i found the entire naked shorting game plan, playbook posted on a form in 2004. They called it seller, boxing and yahoo, or morningstar censoring gamestop data depending on your ip.

It's not a glitch and also revealing the true float of gamestop as well. So, let's start by taking a look at the flow gamestop had 76.49 million shares outstanding as of the 1st of september 2021, and here's a screenshot right here that proves just that with 76.49 million shares from marketbeat. But we can see here in a tweet from jackson. Hunter that yahoo is showing the gamestop float at 249.51 million shares.

We've also got another screenshot here from stock analytics again showing the floaters 248.48 million and another screenshot from stockserra at 249.51 million again. Jackson hunter reckons that this is not a glitch and that this is legitimate. Data leaking through most of these websites actually pull their data directly from the sec website, and especially as it's now on three different websites. It does not seem like a glitch or that somebody is just changing the source code on the yahoo website for a screenshot.

This could potentially be as a result of the new cat system. That's been implemented to replace the old oak system. Maybe this is just the real data now starting to show through for gamestop, and it wouldn't surprise me if amc is not far behind now. Let's also talk about seller boxing.

As you can see, this is a post from sunday, the 3rd of july, or maybe that's the 7th of march 2004, there's a form of securities fraud known as naked short selling. That is becoming very popular and lucrative to the market makers that practice it. It's known as seller boxing, and it has to do with the fact that the nasd and the sec had to arbitrarily set a minimum level at which a stock can trade. Obviously, a stock can't trade if it's valued at nothing, so it has to have some form of minimum value that a stock can possibly be worth.

That level was set at 0.0001 or 100th of a penny. This level is appropriately referred to as the seller. This 0.0001 level can be used as a backstop for all kinds of market makers and naked short selling manipulations. Seller boxing has been one of the security frauds de jour since 1999, when the market went to a decimalization basis.

In the pre-decimalization days, the minimum market spread for most stocks was set. One eighth of a dollar and the market makers were guaranteed a healthy spread since decimalization came into effect. Those 1 8 of a dollar spreads are now often only a penny, as you can see in microsoft's quote throughout the day. Where did the unscrupulous market makers go to make up for all of this lost income? You might ask? Well, they headed south to the otc bb and pink sheets, where the protective effects from naked short selling, like rule 10a and nasd, rule 3350, 3360 and 3370 are non-existent.

The unique aspect of needing an arbitrary seller level is that the lowest possible incremental gain above this seller level represents a 100 spread available to market makers, making a market in these securities when compared to the typical spreads in microsoft of perhaps four tenths of one percent. This is pretty tempting territory. In fact, when the market is no bid to 0.0001 offer, there is theoretically an infinite spread in order to participate in seller boxing. The market makers first need to pummel the price per share down to these levels, the lower they can force.

The share price, the larger the percentage spreads to feed off of this is easily done by a garden variety, naked short selling. In fact, if the market maker is large enough and has enough visibility of buying sell orders as well as order flow like citadel, for example, he can simultaneously be acting as the conduit for the sale of non-existent shares throughout canadian coke-inspiring broker-dealers and their associates with his Right hand, at the same time as his left hand, is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a market maker to have visibility of these buy orders. This is referred to as broker dealer, internalization or naked short selling via desking, which refers to the market makers trading desk.

Don't forget: this is an article from 2004 that is still very relevant to this day, talking about broker dealer internalization and talking about market makers having visibility of buy orders and order flow, while the right hand is busy flooding the victims, company market with counterfeit shares. That can be sold at any instant in time. The left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstratable demand for shares and a huge over supply of shares, which induces a downward spiral in share price.

In fact, until the beefed up version of rule 3370 becomes effective, u.s market makers have been legally processing, naked short sale, orders out of canada and other offshore locations, even though they and the clearing firms involved knew by history. That these shares were in no way going to be delivered again, an article from 2004 talking about naked short sales being processed overseas in countries like canada and potentially brazil. The question that then begs to be asked is how the system can allow these, obviously bogus, sell orders to clear and to settle to find the answer to this. One need to look no further than a denim c to the rules and regulations of the nscc subdivision of the dtcc.

This gaping loophole allows the dtcc, which is basically the 11 000 broker-dealers and banks that we refer to as wall street, to borrow shares from those investors naive enough to hold these shares in street name at their brokerage firm. Now. This is a very, very interesting point. Typically, when you buy shares using any trading platform, whether it's fidelity td, ameritrade weeble, robin hood, anything all of those shares are actually held in the broker's name, not in your personal name.

I think the only way to actually get these shares held in your personal name. Instead of your app or trading provider or broker's name is to apply specifically for actual share certificates, and this amounts to about 95 of us. Theoretically, this borrow was designed to allow trades to clear and settle that involve legitimate one or two day, delays and delivery. This borrow is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest conflict of interest known to mankind.

Basically, these hedges and these market makers can actually borrow your legitimate shares that you hold infidelity and use them in order to satisfy their short position or satisfy their fail to deliver the question becomes. Would these investors knowingly loan without compensation their shares to those whose intent is to bankrupt their investment if they knew the loan process? Was the key mechanism needed for the naked short sellers to affect their goal? Another question that arises is: should the investors broke a dealer who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediate tree in this loan process. Keeping in mind that this broker dealer is being paid, the cash value of the shares being loaned as a means of collateralizing the loans all unbeknownst to his client. The purchaser an interesting phenomenon occurs at the seller levels since nasd.

Rule 3370 allows market makers to legally naked short sale into markets characterized by a plethora of buy orders. At a time when few sell orders are in existence, a market maker can theoretically legally sit at the zero point. Zero, zero, zero one dollar level and sell non-existent shares all day long because at no bid and point zero zero zero one dollar ask: there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off the seller floor and onto the first step of the stairway at 0.001, there is somebody there to step on the hands of the victims.

Corporations market once a given microcap corporation, is boxed in the cellar. It doesn't have a whole lot of options to climb its way out of the cellar. One obvious option would be for it to reverse split its way out of the cellar, but history has shown that these are counterproductive, as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level. Another option would be to organize a sustained buying effort and muscle your way out of the cellar, but typically there will, as if by magic, be a naked short sale order there to meet each and every buy order.

Sometimes the shareholder base can muster up enough buying pressure to put the market at 0.001 bid and 0.002 offer for a limited amount of time. But then later the market makers will typically fire a blitzkrieg of selling to wipe out all of the bids, and the market will go back to no bid and 0.001 offer, as the weeks and months go by the market makers make a fortune with these huge percentage Spreads but the net aggregate short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring market makers. The predicament that they find themselves in is that they can't even stop naked short selling into every buy order.

That appears because if they do, the share price will gap, and this will put tremendous pressures on net capital reserves for the market makers and margin, maintenance requirements for the coke inspiring hedge funds and others operating out of more than 13 000 naked short selling margin. Accounts set up in canada and, of course, covering the naked short position, is out of the question, since they can't even stop the day-to-day naked short selling in the first place, and you can't be covering at the same time. You continue to naked short sale, and this is part of the reasons why the shorts haven't covered their short positions in amc and gamestop, because they're having to continue naked short selling. So you can't cover and they could short sell at the same time, because they're counter-intuitive, the goal of the victim company, now becomes to avoid the three main goals of the naked short sellers, namely bankruptcy, a reverse split or the force signing of a death spiral.

Convertible dementia, out of desperation as long as the victim company can continue to pay the monthly burn rate. Then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing, which includes name, changes, qcip number changes, cancel or reissue procedures, dividend distributions, amending of bylaws and articles of corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake and four shareholders and their broker-dealers to prove the ownership of the old real shares before they get a new real share. Many of them file civil lawsuits at this time as well.

Maybe that could be something that amc could do instead of trying to get a forced share recall they just cancel all of their existing a shares and reissue everyone with new b shares, as long as they can prove that they own a real share. This indirect, forcing of hundreds of u.s micro-cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes. The u.s financial system has ever sustained these massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully, the regulators will come to grips with the reality of naked short selling and tactics like seller boxing and quickly address this fraud that has decimated thousands of u.s microcap corporations and the tens of millions of u.s investors therein.

Well, unfortunately, this article was written in 2004 and it looks like the regulators have done absolutely nothing in that period. Guys be sure to. Let me know down in the comments below what you think about seller boxing and what you think about the gamestop actual flow and, while you're down there be sure to check out the link down in the description below to 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.

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