DJT Requests SEC Investigation into Short Selling: Allegations of “Suspicious Trading Activities” Targeted
Trump Media & Technology Group Issues Warning Over Short Selling
Led by U.S. President Donald Trump, Trump Media & Technology Group (TMTG, stock symbol DJT) has recently issued a warning regarding short selling of its stock. The company has formally contacted the U.S. Securities and Exchange Commission (SEC) to request an investigation into suspected “shorting” and market manipulation, which has attracted significant market attention.
Qube Fund Establishes $105 Million Short Position in Trump Media
According to documents recently made public by the Bundesanzeiger, hedge fund Qube Research & Technologies has established a short position of approximately $105 million against TMTG. This move has shocked the market and caused considerable dissatisfaction within TMTG. On Thursday, the company sent a memorandum to the SEC, expressing unease over Qube’s operations, and even hinted at possible “suspicious trading activities.”
TMTG: Suspects Illegal Short Selling, Calls for Immediate Investigation
In the memorandum sent to the SEC, TMTG explicitly stated: “We urge you to immediately investigate these suspicious transactions and report the findings back to TMTG and all relevant civil and criminal authorities.” The company further pointed out that there are indications of potentially illegal “short selling” activities in the market. “Short selling” refers to selling shares without first borrowing them, which is explicitly prohibited in the U.S. market.
Short Selling Controversy Revived, Legal but Often Criticized
While short selling is legal, it has long been a subject of controversy. Supporters argue that it is an effective mechanism for exposing corporate issues, while critics claim it can easily lead to market volatility. Especially in cases involving politically charged companies like TMTG, short selling can ignite public opinion and regulatory scrutiny.
Qube Responds: No Specific Remarks on Trump Media
Qube Fund responded discreetly, stating that their operations rely entirely on “quantitative models” and do not represent any specific views on Trump Media. Although this response sidesteps direct confrontation, it does not eliminate market suspicions about the legality of its trading activities.
White House: President’s Assets Managed by Trust, No Conflict of Interest
Due to the close association between TMTG and former President Trump, some media outlets have questioned whether the White House is involved in potential conflicts of interest. However, White House spokesperson Anna Kelly responded via email, stating: “The President’s assets are managed by a trust overseen by his children, and there are no conflicts of interest.”
Similar Allegations Are Not New; TMTG Has Previously Filed Complaints
It is noteworthy that this is not the first time TMTG has alleged market manipulation concerning its stock. As early as April 2024, TMTG reported to the SEC that there were suspected “potential market manipulation activities” on the NASDAQ market, indicating that the company has long harbored concerns about external forces manipulating the market.
This move by Trump Media once again brings the topic of “politics x finance” to the forefront. With Trump still being the largest shareholder of the company, fluctuations in TMTG’s stock price not only impact investor confidence but also touch upon politically sensitive nerves.
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