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Trump Media has warned the Nasdaq market of ‘potential market manipulation’ of the company’s stock by “naked” short selling of shares.
The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.
Trump Media CEO Devin Nunes, in his letter Thursday to Nasdaq CEO Adrena Friedman, did not directly accuse anyone in particular of naked short selling, which is the sale of stocks without first having borrowed such sales for that purpose.
But Nunes, whose company owns the Truth Social app, pointed to circumstantial evidence, which included DJT being in early April the most expensive stock to short in the United States, which he said would give brokers “significant financial incentive to lend non-existent shares.”
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