Investing.com -- Shares of Trump Media and Technology Group Corp. (Nasdaq, NYSE Texas:DJT) climbed 6.2% today after the company called for a U.S. Securities and Exchange Commission (SEC) investigation into alleged suspicious trading activities by UK hedge fund Qube Research & Technologies.
The company alleges that Qube may be engaging in "potential illegal naked short selling and market manipulation," citing a discrepancy between the number of shares Qube has disclosed shorting and the exchange short interest data. Qube’s short position amounts to 5.7 million shares, which is roughly 2.5% of DJT’s outstanding shares and is only surpassed by U.S. President Donald Trump’s majority stake.
In a memo dated April 17, 2025, sent to the SEC, TMTG detailed concerns over Qube’s trading activities, including the disclosure of a significant short position in Germany, despite the trades’ lack of confirmation by any U.S. exchange. The memo highlights that the total short interest in DJT stock remained virtually unchanged from March 31 to April 16, 2025, at around 11 million shares. TMTG also noted that DJT stock had appeared on Nasdaq’s Regulation SHO Threshold Security List for over two months in 2024, which could indicate potential issues with naked short selling practices.
TMTG, which operates social media platform Truth Social, streaming platform Truth+, and FinTech brand Truth.Fi, has urged the SEC to conduct an immediate investigation and report any findings to the company and relevant authorities. The memo emphasizes the importance of transparency and efficiency in American equity markets, contrasting the current situation with an "opaque free-for-all reminiscent of a third-world casino."
The request for an SEC investigation appears to have resonated with investors, leading to today’s uptick in TMTG’s stock price. The company’s push for regulatory scrutiny comes amid broader market concerns over short selling practices and market manipulation.
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