How Hedge Funds Manipulate Stock Prices –
Every friday hedge fund stock options expire. The “put” options are bets on losses against stocks, that the hedge funds make for months and they have to cover them with more money frequently. As the put options expire, hedge funds try to cover by running shorting tactics to pay the lowest amount to continue to drain profits from the targeted company. The first hedge funds to cover options during shorting, can then break and inflate the price to prevent other hedge funds from continuing to profit. This creates spikes, bubbles, or short squeezes*; that return down rapidly with sell offs, short sells and short positions again**. There is one timid regulation by the SEC*** that helps restrict short corruption a bit, but fines are usually paid allowing for continued greater illegal profits. Deregulation aids the corrupt crony rigging, as they would rather not even have laws against their theft.
Short Positioning – using tactics to profit from destroying stocks using futures, options, trades, and swaps
Types of Stock Short Position Tactics:
Short Selling – selling a stock soon after borrowing or buying (often mistakenly used to mean positioning)
Naked Shorting – creates fake shares that do not exist, to sell to bring price down.
Short Ladder Attack – rapid repeated consecutive short sells or fake trade walls (carrot & stick) at lowering prices. Sometimes called “ping-pong” as the prices are stepped back and forth on the ladder rungs or trade lists.
Phantom Trade Walls – fake trade orders that become FTDs or cancelled orders but are used as massive sell or buy blocks that vanish at market close or never get delivered, but were kept as a carrot to direct the price movement.
Short Put Options – bets against a stock, that price will decline at set future targets.
Short Futures or Margin Position – Margin deposit 50% of total sale, bets if price goes to zero they get double the margin; but max potential loss is unlimited if the price goes up.
Corporate Media Propaganda – public smears and lies against stocks and stock holders; using F.U.D. (fear, uncertainty, and doubt) to scare long term investors into not buying or selling, and attract more short positions.
Dark Pool (off the lit exchange) Trades – retail trades are supposed to go to the lit exchange by law, but market makers seem to divert massive amounts of buy orders from reaching the open market, using various excuses such as their ability to write infinite IOUs instead of “delivering actual digital shares”, and are not significantly punished as long as they make money for the rich. These IOU FTDs are then also bundled into junk bonds and used as fake share collateral to naked short.
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*A ‘short squeeze‘ is a temporary rapid increase in the price of a stock due to excess short positioning. A short squeeze occurs when there is a lack of supply and an excess of demand for the stock due to hedge funds having to buy stocks to cover their short positions.
**A ‘long squeeze‘ is long term short position hedging (if unchecked with buyers). During long squeezes long term investors slowly sell off to hedge losses if they feel the company may continue to go under with no return (bankrupt or dissolve). [see GE stock price chart over 10 years]
***Short-Sale Rule (SSR) – a Securities and Exchange Commission (SEC) trading regulation that imposes restrictions on short selling only when a stock has triggered a circuit breaker by experiencing a price decline of at least 10 percent in one day. At that point, short selling would be permitted if the price of the security is above the current national best bid.
How Exchanges Manipulate Stock Price
EDGX is one of the exchanges walking the AMC price down daily, according to some stock watchers [AMC Exchange Video].
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The price charts for GME, Nokia, Black-Berry, Bed-Bath-And-Beyond, and AMC mirror each-other due to manipulated corporate bot shorting. The hedge fund companies that attack GME seem to be the same that attack AMC (Robinhood, Citadel, Melvin). When prices are down, holding feels like prison. I recommend herbs to deal with the passage of time until prices go up. it is kind of like we are on a long train ride together, and some of us feel like talking until we get off at our stop.
This was not a one time trend only. Yes there was a major event like a 2 day battle, but other battles happen every week between investors and hedge sharks. Our movement now has more social union power, which is changing the game, despite elite reactions to stop us from doing business. The ‘Infiltrate Wall Street’ WAR has really only started. The establishment does not want new money players from the lower and middle class moving up and competing for profits with them, so they will continue to manipulate the market by using their ownership power to control rigging in their favor. The rich will claim that the lower classes are manipulating by conspiring socially, but that is how business works.
Keith Gill aka Roaring Kitty aka D.F.V. is just one of our heroes fighting for the rights of average investors to buy stock shares and grow companies and increase their life savings (because banks sure as hell are not helping). Granted Keith Gill worked for an investment company and had $750,000 to invest, which most people do not; but he shared his information so that other investors could learn and have some fun in the process socially. His artistic ‘value’ style and liberal attitude in his videos are revolutionary for society. The price range for his favorite company Gamestop (GME) was $5-$300 which he bought up to an average price of $62 with 150,000 shares totaling $47,000,000.
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