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Trump Media Concerned About Potential Market Manipulation, Files Complaint with Nasdaq
Trump Media, the parent company that owns Truth Social, has recently expressed apprehension regarding potential market manipulation affecting its stock. The company filed a formal complaint with Nasdaq to address these concerns.
Stock Performance and Recent Developments
Despite recent fluctuations, the platform’s stock, DJT, has demonstrated positive performance. Marketwatch reports that the stock surged by as much as 45.3% within a week, marking its most significant increase in nearly a month. This growth followed the company’s merger with a blank check entity to become publicly traded in March. However, DJT has experienced a downturn since reaching its all-time high, dropping by approximately 50% from its peak last month.
Trump Media CEO, Devin Nunes, formerly a Congressman and member of the Trump presidential transition team, penned a letter to Nasdaq addressing concerns of potential market manipulation. The letter highlights the illegal practice of “naked” short selling and emphasizes the detrimental impact such activities can have on affected companies.
Concerns Raised by Trump Media
The letter stresses the presence of DJT on Nasdaq’s “Reg SHO threshold list,” indicating potential unlawful trading practices. These lists, mandated by regulations, can signify improper naked short selling, according to reports. troubling data indicates that a small group of market participants are responsible for a significant portion of DJT shares traded, potentially disadvantaging retail investors.
The letter points out that market participants such as Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital have accounted for over 60% of the exceptional trading volume in DJT shares, sparking concerns about sophisticated players profiting at the expense of retail investors.
Response from Citadel Securities
Following Trump Media’s complaint, Citadel Securities issued a scathing statement rebuking Nunes and dismissing the allegations of market manipulation. The statement was critical of Nunes, drawing comparisons to individuals who would not meet expectations on shows like “The Apprentice.” The firm emphasized the importance of ability and integrity in their operations.
On the heels of Trump Media’s complaint, DJT stock experienced a marginal increase, rising by 12% before stabilizing for a 2% gain, as reported by Marketwatch.
Gizmodo has reached out to involved parties, including TMTG, Virtu, Jane Street Capital, Susquehanna International Group, and Nasdaq, for their comments on the matter.
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