Trimbath keeps banging the drums on FTD’s but GME has very little FTD’s going on. I do think FTD’s are a big problem and they should carry consequences but I don’t think it’s the biggest problem.
The biggest problem, and the one most relevant to GME, is infinite liquidity.
If there is infinite liquidity, then shorts can buy to close, and then immediately short two or three times more and walk away with even more money. Why FTD when you can roll over your shorts, and just keep piling them on?
When it’s time to close those shorts, you close them and short sell twice over again.
Then when it’s time to close those shorts, you close them and short sell twice over again.
And then when it’s time to close those shorts, you close them and short sell twice over again.
Repeat, repeat, repeat.
This is how Citadel Securities traded over 964 million shares of GME over the past 3 years.
https://www.reddit.com/r/GME/comments/15t09n7/the_gme_otc_conspiracy_presenting_over_3_years_of/
Someone should ask Trimbath what she thinks about infinite liquidity on the stock market, and if the DTCC should be audited?
The only person authorized to issue new shares is the company whose shares are being traded. The DTCC can not issue new shares.
In the face of infinite liquidity, arguing over FTD’s is like being worried you left your oven on when your house is on fire.
The FTD data suggest they are in fact closing their shorts. There is very little FTD happening in GME’s FTD data.
They are able to close thier shorts if infinite liquidity allows them to open two new shorts perpetually. Every time they close, they just open two more. This way they keep getting more money and more time.
https://fintel.io/sftd/us/gme
50,000 or maybe 100,000 on a bad day. That seems like a lot to a retail investor, but that’s nothing when the float is officially 265 million. It’s actually very low as a percentage of the float.
For the record - because of infinite liquidity there is actually much more than 265 million shares of GME in circulation. That means this level of FTD is piddly small. Absolutely tiny.
But we know that the short sellers have huge short positions based on the short volume being over 50% every day for years on end.
How can the short volume be so high, and the FTD’s be so low, for years? This is possible because they are closing their shrots but they are able to short sell an infinite amount of shares.
Apes have limited buying power. Hege funds have unlimited short selling power.