They did a fabulous job shorting QMNM since it peaked @ .075 cents and were adding to their shorts before the production announcement was made. They could not let the PPS run away so they started shorting it to death and appeared on the SHO list. They were basically selling & shorting shares in order to cover at lower prices. This shook out a VERY high number of weak hands as I witnessed many giving up on the Yahoo board Thursday and Friday. This brought us to .0132 on Friday where the MM's jumped back in causing the pop.
This is JMO but shows how the playing field isn't equal.
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This whole naked shorting thing is just f*cked up. How can you sell something on a damned financial exchange and not deliver, and do it again and again, and not wind up in jail? Isn't that fraud? Like writing bad checks?
It's kind of fraud and kind of not. Idea comes from basically not 'having' the shares on hand readily available to short, so they short shares that aren't there, but you technically should have to take delivery w/in 3 days.
The fraudelent part is when MM's use their leverage and naked shorts to drive a company's stock price into the ground. That's bs as I see it.
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