Trump Media and Technology Group Writes a Letter to the Nasdaq Exchange To Complain About “Market Manipulation” by Short-Sellers

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Trump Media and Technology Group (NASDAQ: DJT) appears to have settled on short-sellers - particularly of the "naked" variety - as the prime culprit behind the stock's relentless decline in the past few days, judging by a letter that Truth Social's parent company has now sent to the Nasdaq index.

Trump Media and Technology Group's Letter to the Nasdaq Exchange

To wit, Trump Media and Technology Group has now penned a letter to urge the Nasdaq exchange to probe its inclusion in the so-called threshold list:

Related Story Trump Media and Technology Group (DJT) Gives Advice To Concerned Investors on How To Prevent Their Shares From Being Loaned Out For Short Positions

For the benefit of those who might not be aware, the threshold list is published by various exchanges and includes stocks that have an aberrantly high number of "fail to deliver" (FTDs) shares. FTDs might be indicative of naked short-selling activity, an illegal activity where a short-seller sells the shares of a stock without first borrowing them.

Trump Media and Technology Group's letter goes on to note:

Fundamentals vs. Short-Seller Attack

We noted recently that Trump Media and Technology Group has now given up almost all of its post-merger gains on the back of two distinct liquidation waves, with the first such wave precipitated by the company's disclosure that its Truth Social platform raked in a paltry $4.131 million in revenue in the entire of 2023, incurring a net loss of over $58 million, and the second major downward leg prompted by a filing with the SEC for the issuance of 21.491 million shares upon the exercise of the company's warrants.

We also noted in our previous post on this topic that, given the dearth of freely available shares for shorting, it is currently quite expensive to take a bearish position in Trump Media and Technology Group, as indicated