MemberJuly 31, 2021 at 3:22 pm
For them to cover, they need someone willing to sell so that they can buy from them and close out that position. A huge majority of people aren’t selling, so there isn’t a way for them to cover when nobody is selling. The good news is that they aren’t covering. If they have been, it’s been very small since most people aren’t selling. When they do start covering you will know because the price will start to rise and the short interest will fall.
What you’re seeing with the price is straight up manipulation. They have many ways of pushing the price down.
They have been directing +60% of the transactions to the dark pools for a long time now. There are websites that show that info. All of those transactions don’t affect the real price we see in the exchange. They are abusing the purpose of the dark pools.
They can also delay orders. So as an example, if you bought today, they could be holding on to that transaction and not processing it for any number of days. Some have guessed it could be delayed by days, weeks, or even months. Your broker made the trade happen for you and now you technically own those shares, but your order never flowed into the exchange to get processed, therefore it never affected the price you see out there. It’s sitting somewhere on the sidelines waiting. Take a look into Citadel Connect and other ATS’s (Alternative Trading System).
They also could still be doing naked short selling (creating the synthetics) to push into the market and keep the price down. By doing this, they are only creating more IOU’s that they will eventually have to pay back. The hole they are digging for themselves is only getting deeper when they do this. While we wait for each paycheck every week or two, they can essentially print their own money whenever they want it.
Short ladder attacks still happen. A lot of good screenshots keep popping up on the reddit boards showing it.
Front running is still going on too. This is where when you place an order to buy, they get your order, see you want to buy (which will make the price go up) and pause your order for a split second so that they can place an equal or bigger sell order right in front of your order, then they place your order. This gives them a huge advantage and why in my opinion it is wrong for any market maker that has the ability to route and process orders to be able to also trade for their own profit.
Basically, they have a lot of tools and ways to manipulate the price. That’s why you probably have heard people say ignore the price you see because it doesn’t reflect the real price (or what it really should be without all this manipulation).