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The /wallstreetbets GME retail investors vs the 0.1% situation has lead me to a place of clarity. The game is rigged, and the owners of the system will react with haste and break any laws they must to protect their cartel. For those not following the event
- Retail investors, realised the shares of GME and some other companies were heavily shorted and in short supply, so they started buying in the hope of forcing a short squeeze (whereby the holder of the shorts will then have to buy more stock to cover their shorts, sending the price through the roof, an example is Volkswagen [VW] in the 2000's). This is perfectly legal.
- the plan worked, GME went from $2 to $470 in a short space of time.
- Melvin Capital, a Hedge fund took a massive (likely $6 billion) short position in GME and faced closure if the bet went against them, they were losing money at a fast rate and got a bail out last week by other wall street Hedge funds.
- Melvin Capital then went on CNBC and other networks to reveal they had closed their short positions, it's highly unlikely as the options volume did not back up their claim, they were simply spreading disinformation, again this is perfectly legal
- the retail investors at /wallstreetbets simply would not give up, they kept buying, the end goal could have seen the stock reach $5K based on the VW scenario.
- the 0.1% moved to then protect the 0.1% from losing money by using the stock brokerages they own or control(Robinhood, TD, IB and all the other big players) to firstly prevent the retail investors buying more stock, you could simply not buy these stocks, you could only sell, some companies even forcibly closed down open options positons even in the absense of margin calls, so your account is in good standing with enough liquidity and they decide which stock you can have and which you can not, in this time big institutions are allowed to buy as much of this stock as they desire, just the retail traders are locked out of the casino. This is highly illegal and known as market manipulation, it also flies in the face of the idea that we have a free market.
- people like AOC, Elon Musk, Chamath have all come out on the site of the retail traders at /wallstreetbets
- Interactive Brokers chairman and founder Thomas Peterffy goes on CNBC’s “Closing Bell” an is literally weeping, explaining he feels hurt that his large, moneyed 0.1% friends are losing money due to the retail investors, oh the horror, how can these small investors make my friends lose money? Don't they know the implications of their actions? The horror.
The guys at /wallstreetbets simply did not understand that in our world only old money gets to make real money, the little guy must be shut down and should never have a slice of the action, all he gets is inflation and a 9 to 5 job, plus side hustle if he/she's lucky. If the little guy ever finds a way to gain an advantage the loophole is quickly closed.
- the SEC Chair then threatens to investigate the redditors on /wallstreetbets by tracking down their IP numbers with the help of reddit
- The /wallstreetbets discord server is banned.
All the years I talked trash about bitcoin, I apologise, now I genuinely understand the value of having a system not controlled by the government, where they can not on a whim decide to inflate the money supply and bail out their friends, while you carry the load in the form of additional taxes and inflation.

TLDR: GameStop’s Congress hearing is on Feb 18th, they need to investigate the Prime Brokers and DTCC for their complicity in enabling naked shorting within GME and by extension, potential collusion to shut down trading on Jan 28th, the day the short squeeze was going to kick off. (stick to the end for an analysis of some illegal tactics short side hedge funds have been using)
Thesis: On the day the retail market for GME shut down on 1/28 (the day the short squeeze would’ve happened had there been no market intervention), DTCC (clearing house monopoly) shut down retail buying in order to protect itself and Prime Brokers (which privately own the DTCC) from being exposed to the consequences of being party to illegal activity. I believe Prime Brokers and DTCC need to be called to the GameStop hearing on February 18th to be questioned for their complicity in enabling illegal naked shorting of the GME stock, as well as potential collusion to shut out retail buyers on 1/28.
In my previous post (which I recommend reading for some context) I explored the subject of rampant illegal naked shorting in GME, and how Prime Brokers (consisting of banks like Goldman, Morgan, etc) and DTCC would be complicit in the naked shorting. This in turn raises the thought experiment that they would be incentivized to do anything possible to prevent the short squeeze from happening on 1/28 because had the short squeeze happened, the shorts would go bankrupt and their Prime Brokers who lent them their naked shorted shares would need to cover the shares. This would not only represent a humongous capital expense for Prime Brokers, the culpability of Prime Brokers (and that of the DTCC) in this situation would also have likely been exposed as well.
A quick primer on what a Prime Broker is: Prime Brokers are essentially the service side of the short- selling business. They lend out securities and cash, you can think of them as the “house” in a casino: They provide a gambler with markers to play and to manage his winnings. According to Matt Taibi, “Under the original concept, if a hedge fund that wanted to short a stock they would first need to “locate” the stock with his Prime Broker but as time passed, Prime Brokers increasingly allowed their hedge-fund customers to use automated systems and “locate” the stock themselves, and what this does is enable short-sellers to sell stock without delivering and thereby perform naked shorts with counterfeit shares. (source: https://web.archive.org/web/20210213125246/https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/). (I highly recommend you read Matt Taibi’s article on naked shorting and how it was used to take down Bear Stearns and Lehman Brothers. There are so many parallels with GME it’s hard to miss. It’s amazing to consider that 12 years after this article was published and brought to public awareness, the problem of naked shorting still exists as a systemic issue.)
Prime Brokers have a long history of being associated with naked shorting. To highlight a few examples, Prime Brokers like Merill Lynch and Goldman have long been implicated for naked shorting Overstock.com (https://www.rollingstone.com/politics/politics-news/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-244035/, https://www.forbes.com/2007/02/02/naked-short-suit-overstock-biz-cx_lm_0202naked.html?sh=271400d1763f). Another example is when Goldman’s Prime Brokerage was implicated by the SEC in 2016 and got away with a small fine of 16 million (Source: https://www.sec.gov/news/pressrelease/2016-9.html). An example that very recently came in the news is a story where CIBC, BOA, UBS and TD Bank Prime Brokerages are accused of facilitating naked short selling and using counterfeit stock to attack and bring the stock price of a company from $34.77 to $1.83 (Source: https://www.securitiesfinancetimes.com/securitieslendingnews/industryarticle.php?article_id=224548).
The DTCC also has a very long history of being associated with naked shorting. The Wall Street Journal noted that 1% of the DTCC’s volume end in failure to deliver which “have put DTCC in the middle of a long-running fight over whether unscrupulous investors are driving down hundreds of small companies' share prices… DTCC has turned a blind eye to the naked-shorting problem. ” (Source: https://www.wsj.com/articles/SB118359867562957720). The DTCC has also had numerous complaints submitted to the SEC for enabling naked shorting (source: https://www.sec.gov/rules/proposed/s72303/decosta122203.htm) and have been sued tens or hundreds of times for assisting naked shorts (source: https://smithonstocks.com/part-3-in-series-on-illegal-naked-shortings-role-in-stock-manipulation-prime-brokers-and-the-dtcc-have-a-troubling-monopoly-on-clearing-and-settling-stock-trades/ and http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html and https://www.wsj.com/articles/SB118359867562957720)
On 1/28 Robinhood received a letter from the DTCC at 4 am requiring them to halt trading or come up with 3 billion dollars, which Robinhood did not have, and therefore with one swoop of the pen the DTCC shut down buy side momentum but strangely allowed selling. Retail investors were shut out of the market and as any student of microeconomics would know, by shutting buy but only allowing sell, the price is bound to fall. Meanwhile while hedge funds were able to keep trading not only in the market but also crosstrade in the dark pools (“private” stock markets that retail is shut out of, more on this later), and use this crucial lifeline given to them by the DTCC to prevent the squeeze from happening that day.
With retail abruptly being shut out from buy (even cash accounts were shut out, which didn’t make sense) and only allowed to sell, almost everyone could smell manipulation was afoot (which triggered the Congress hearing) and the most of the blame was pointed at Robinhood. Personally and in hindsight, I believe Robinhood was just a willing scapegoat. When we think about who had the most to lose if a short squeeze occurred, I’ll narrow it down to three entities, Shorts and their stakeholders (ie Citadel), Prime Brokers and the DTCC.
It’s important to remember that the actual impetus that triggered the shutdown of the market for retail investors came from the DTCC. Working backwards, if you consider that GME was rampantly naked shorted and DTCC and Prime Brokers would have to be complicit in it, I believe the DTCC, Primer Brokers and possibly Citadel (who provides 40% of Robinhood’s revenue) brazenly manipulated the market on 1/28 by shutting down purchasing for retail buyers to prevent the squeeze from being squoze on that day as doing so would be catastrophic for all aforementioned parties involved. I believe that on the upcoming Gamestop Congress hearings the Financial Services Committee needs to call on decision makers of DTCC and Prime Brokers explore their role and complicity in the shut out of retail buyers that day as well as being enablers of naked shorting in GME.
An interesting thought experiment: On 1/28 when the price was 450+ and shorts were likely under 100, if we assume prime brokers allowed naked shorting in GME, then when the squeeze was about to happen (or happening), if Prime Brokers had margin had called the shorts, they would presumably also also gone down because shorts would not be able to pay in that event and the brokers would be holding the bag. By that logic, they have every incentive in this case to NOT to margin call and instead the most logical option would probably would have been to make a backroom deal, which is what I personally think most likely happened.
If you’ve read up to this point, you might be thinking what can I do about this? I am aware that there a lot of cynicism that we can’t do anything, that there will be no justice for retail investors who were harmed this situation, and that institutions and people in power will prevent anything from being done. I feel this sometimes too, but remember:
A single voice can be drowned out, but if we all speak together then we will make our voice heard. Ape Strong Together.
With the hearing coming up on February 18th, I highly recommend you email and tweet the representatives involved in the hearing, as well as your own district representatives, and urge them to read into the factors presented in this post and call the DTCC and Prime Brokers to the hearingl. They need to be questioned on why GME has so many counterfeit shares, failed to deliver, their complicity in naked shorting, and investigated for their role in the retail shut down of 1/28. Below are 4 members of congress I recommend both tweeting and emailing
Alexandria Ocasio-Cortez https://twitter.com/AOC, email: [[email protected]](mailto:[email protected])
Al Green https://twitter.com/repalgreen, email: [[email protected]](mailto:[email protected])
Maxine Waters https://twitter.com/maxinewaters, email: [[email protected]](mailto:[email protected])
Nancy Pelosi Email: https://twitter.com/SpeakerPelosi email: [[email protected]](mailto:[email protected]).
And you can find other members of Financial Services Committee here to reach out to: https://financialservices.house.gov/about/committee-membership.htm
What follows should probably be a separate post, but I will take the opportunity to summarize some of the illegal tactics that shorts have been identified to be using in their war with retail investors. Note that this may not be an exhaustive list and there may be newer tactics deployed in the future. Retail investors might not have the same tricks, resources and willingness to break the law for profit as hedgies do, but my hope and belief is that if we pool our knowledge and analysis, we will figure out their game and effectively adapt.
Feel free to forward the list below to any representatives and lawmakers if you concur that these tactics were used:
Rampant Naked Shorting - With the extremely high number of Fail to Delivers (FTID) , short interest being as high as 226% recently, and institutions alone holding a staggering 177% of the total float (likely due in large part to counterfeit shares), signs strongly point to GME being rampant with naked shorts and counterfeit shares. I believe the original goal of shorts was to drive GME to bankruptcy with these naked shorts, using the laddering of naked shorts (aka short ladder attack), executed with the help of counterfeit stock which is a classic and reliable method of driving down the stock price. I believe the GME stock has seen relentlessly aggressive short attacks, especially on the week of Monday February 1st, which drove the stock price down and triggered panic selling.
Ladder Attacks with the help of Dark Pools - Another identified method of ladder attacks was identified to come from crosstrading with darkpools (the stock market has its own private stock exchange where institutions can trade…). Essentially darkpools are private stock markets retail investors do not have access to, where short side funds can purchase securities “off market” and then sell “on-market”, with the effect of creating a lot more downward pressure on the market without the upward pressure from buying.
Illegally masking shorts with synthetic longs. Another tactic shorts are suspected of using in GME is the use of illegally using options to evade short positions in violation of Reg SHO which SEC describes in this risk alert and which I elaborate in this post. Essentially it’s the use of using options to create synthetic longs to illegally and artificially cover and prolong short positions and at same time obscuring the true short interest %. If you consider that it would be far more profitable for shorts to not cover at high prices but instead ladder attack the price and wait for retail investors to lose interest and close their shorts at as low of a price as possible, then you can see why this strategy would be very effective.
Using way out-of-money call options to obscure true short interest. You may have heard about the 43 million worth of 800 dollar calls purchased when the price was 100 and found it odd. Later it was identified as a tactic to cheaply purchase synthetic call options (since at 800 its way out of money) to obscure their short positions (with the added benefit of hedging at 800 if a squeeze does happen)
One thing I want to note, particularly to legislators at the GameStop hearing: Retail investors were not incited to pump GME. Retail investors spotted a unique Short Squeeze opportunity created by the greed of short side hedge funds, whereby GameStop was being abusively naked shorted with the goal of bringing it to bankruptcy, and hedge funds were so greedy about it that they shorted the company with a short interest of 226% of float, meaning A LOT of counterfeit shares were being used to short the company. Retail investors saw this as an opportunity to short squeeze the hedge fund shorters, which is a legal and legitimate investment strategy. The short squeeze would have happened had everyone played fair, but instead, financial institutions who were culpable to the naked shorting intervened and shut down retail buying, hurting the retail investors and successfully manipulating the market. The investment itself was in my opinion a sound decision based on the short squeeze, but in hindsight retail investors did not seriously consider the risk of the market would be blatantly and publicly manipulated and that the market would be rigged against them.
If this post was useful (and I hope it was! Gave up my Friday night to write this for you Apes), please upvote for visibility and share it far and wide. The GameStop hearings could be a first step and hope towards legislative change, and it’s extremely important that the right story is told at those hearings (and by the right story I mean the real truth of what happened.) I hope the truly culpable parties are investigated and brought to justice. Again, I know many of us feel cynical that anything meaning will be done towards finding justice against the lawbreakers in this case, but if you feel even an ounce of injustice or empathy at how retail investors were unfairly harmed in the course of investing in GME, I strongly urge you to contact a legislator associated with the GameStop hearings and bring this to their attention so they can review this case with more complete information. In addition I recommend you to contact the SEC and any journalist you know or via journalist tip lines. It’s not going to be easy but the more awareness we raise the higher the likelihood our voices will be heard and positive change will be made.
As we navigate the rocky waters ahead, I’ll gift you with a favorite quote of mine:
The only difference between a nightmare and a dream is how big your balls are.
🚀🚀🚀
Disclaimer: I am not an investment advisor, I just like the stock.
Ps. If you’ve read to the end, I’ll leave you with a few more thoughts and reminders:
- If I were to distill life into one thing, it would be to never lose hope.
- Remember that if you’ve lost money in any way shape or form, don’t be depressed, money can always be made back and the important thing is to maintain a good attitude.
- Only invest what you can afford to lose.
- Perhaps the most important factor in good investing is patience.
If you’d like to read more about counterfeiting stocks this is a good place to start http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html

TLDR: GameStop’s Congress hearing is on Feb 18th, they need to investigate the Prime Brokers and DTCC for their complicity in enabling naked shorting within GME and by extension, potential collusion to shut down trading on Jan 28th, the day the short squeeze was going to kick off. (stick to the end for an analysis of some illegal tactics short side hedge funds have been using)
Thesis: On the day the retail market for GME shut down on 1/28 (the day the short squeeze would’ve happened had there been no market intervention), DTCC (clearing house monopoly) shut down retail buying in order to protect itself and Prime Brokers (which privately own the DTCC) from being exposed to the consequences of being party to illegal activity. I believe Prime Brokers and DTCC need to be called to the GameStop hearing on February 18th to be questioned for their complicity in enabling illegal naked shorting of the GME stock, as well as potential collusion to shut out retail buyers on 1/28.
In my previous post (which I recommend reading for some context) I explored the subject of rampant illegal naked shorting in GME, and how Prime Brokers (consisting of banks like Goldman, Morgan, etc) and DTCC would be complicit in the naked shorting. This in turn raises the thought experiment that they would be incentivized to do anything possible to prevent the short squeeze from happening on 1/28 because had the short squeeze happened, the shorts would go bankrupt and their Prime Brokers who lent them their naked shorted shares would need to cover the shares. This would not only represent a humongous capital expense for Prime Brokers, the culpability of Prime Brokers (and that of the DTCC) in this situation would also have likely been exposed as well.
A quick primer on what a Prime Broker is: Prime Brokers are essentially the service side of the short- selling business. They lend out securities and cash, you can think of them as the “house” in a casino: They provide a gambler with markers to play and to manage his winnings. According to Matt Taibi, “Under the original concept, if a hedge fund that wanted to short a stock they would first need to “locate” the stock with his Prime Broker but as time passed, Prime Brokers increasingly allowed their hedge-fund customers to use automated systems and “locate” the stock themselves, and what this does is enable short-sellers to sell stock without delivering and thereby perform naked shorts with counterfeit shares. (source: https://web.archive.org/web/20210213125246/https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/). (I highly recommend you read Matt Taibi’s article on naked shorting and how it was used to take down Bear Stearns and Lehman Brothers. There are so many parallels with GME it’s hard to miss. It’s amazing to consider that 12 years after this article was published and brought to public awareness, the problem of naked shorting still exists as a systemic issue.)
Prime Brokers have a long history of being associated with naked shorting. To highlight a few examples, Prime Brokers like Merill Lynch and Goldman have long been implicated for naked shorting Overstock.com (https://www.rollingstone.com/politics/politics-news/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-244035/, https://www.forbes.com/2007/02/02/naked-short-suit-overstock-biz-cx_lm_0202naked.html?sh=271400d1763f). Another example is when Goldman’s Prime Brokerage was implicated by the SEC in 2016 and got away with a small fine of 16 million (Source: https://www.sec.gov/news/pressrelease/2016-9.html). An example that very recently came in the news is a story where CIBC, BOA, UBS and TD Bank Prime Brokerages are accused of facilitating naked short selling and using counterfeit stock to attack and bring the stock price of a company from $34.77 to $1.83 (Source: https://www.securitiesfinancetimes.com/securitieslendingnews/industryarticle.php?article_id=224548).
The DTCC also has a very long history of being associated with naked shorting. The Wall Street Journal noted that 1% of the DTCC’s volume end in failure to deliver which “have put DTCC in the middle of a long-running fight over whether unscrupulous investors are driving down hundreds of small companies' share prices… DTCC has turned a blind eye to the naked-shorting problem. ” (Source: https://www.wsj.com/articles/SB118359867562957720). The DTCC has also had numerous complaints submitted to the SEC for enabling naked shorting (source: https://www.sec.gov/rules/proposed/s72303/decosta122203.htm) and have been sued tens or hundreds of times for assisting naked shorts (source: https://smithonstocks.com/part-3-in-series-on-illegal-naked-shortings-role-in-stock-manipulation-prime-brokers-and-the-dtcc-have-a-troubling-monopoly-on-clearing-and-settling-stock-trades/ and http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html and https://www.wsj.com/articles/SB118359867562957720)
On 1/28 Robinhood received a letter from the DTCC at 4 am requiring them to halt trading or come up with 3 billion dollars, which Robinhood did not have, and therefore with one swoop of the pen the DTCC shut down buy side momentum but strangely allowed selling. Retail investors were shut out of the market and as any student of microeconomics would know, by shutting buy but only allowing sell, the price is bound to fall. Meanwhile while hedge funds were able to keep trading not only in the market but also crosstrade in the dark pools (“private” stock markets that retail is shut out of, more on this later), and use this crucial lifeline given to them by the DTCC to prevent the squeeze from happening that day.
With retail abruptly being shut out from buy (even cash accounts were shut out, which didn’t make sense) and only allowed to sell, almost everyone could smell manipulation was afoot (which triggered the Congress hearing) and the most of the blame was pointed at Robinhood. Personally and in hindsight, I believe Robinhood was just a willing scapegoat. When we think about who had the most to lose if a short squeeze occurred, I’ll narrow it down to three entities, Shorts and their stakeholders (ie Citadel), Prime Brokers and the DTCC.
It’s important to remember that the actual impetus that triggered the shutdown of the market for retail investors came from the DTCC. Working backwards, if you consider that GME was rampantly naked shorted and DTCC and Prime Brokers would have to be complicit in it, I believe the DTCC, Primer Brokers and possibly Citadel (who provides 40% of Robinhood’s revenue) brazenly manipulated the market on 1/28 by shutting down purchasing for retail buyers to prevent the squeeze from being squoze on that day as doing so would be catastrophic for all aforementioned parties involved. I believe that on the upcoming Gamestop Congress hearings the Financial Services Committee needs to call on decision makers of DTCC and Prime Brokers explore their role and complicity in the shut out of retail buyers that day as well as being enablers of naked shorting in GME.
An interesting thought experiment: On 1/28 when the price was 450+ and shorts were likely under 100, if we assume prime brokers allowed naked shorting in GME, then when the squeeze was about to happen (or happening), if Prime Brokers had margin had called the shorts, they would presumably also also gone down because shorts would not be able to pay in that event and the brokers would be holding the bag. By that logic, they have every incentive in this case to NOT to margin call and instead the most logical option would probably would have been to make a backroom deal, which is what I personally think most likely happened.
If you’ve read up to this point, you might be thinking what can I do about this? I am aware that there a lot of cynicism that we can’t do anything, that there will be no justice for retail investors who were harmed this situation, and that institutions and people in power will prevent anything from being done. I feel this sometimes too, but remember:
A single voice can be drowned out, but if we all speak together then we will make our voice heard. Ape Strong Together.
With the hearing coming up on February 18th, I highly recommend you email and tweet the representatives involved in the hearing, as well as your own district representatives, and urge them to read into the factors presented in this post and call the DTCC and Prime Brokers to the hearingl. They need to be questioned on why GME has so many counterfeit shares, failed to deliver, their complicity in naked shorting, and investigated for their role in the retail shut down of 1/28. Below are 4 members of congress I recommend both tweeting and emailing
Alexandria Ocasio-Cortez https://twitter.com/AOC, email: [[email protected]](mailto:[email protected])
Al Green https://twitter.com/repalgreen, email: [[email protected]](mailto:[email protected])
Maxine Waters https://twitter.com/maxinewaters, email: [[email protected]](mailto:[email protected])
Nancy Pelosi Email: https://twitter.com/SpeakerPelosi email: [[email protected]](mailto:[email protected]).
And you can find other members of Financial Services Committee here to reach out to: https://financialservices.house.gov/about/committee-membership.htm
If there's one thing I took away from this its that we can't wait for other people to do the right thing, we each need to individually step up to ensure it happens
What follows should probably be a separate post, but I will take the opportunity to summarize some of the illegal tactics that shorts have been identified to be using in their war with retail investors. Note that this may not be an exhaustive list and there may be newer tactics deployed in the future. Retail investors might not have the same tricks, resources and willingness to break the law for profit as hedgies do, but my hope and belief is that if we pool our knowledge and analysis, we will figure out their game and effectively adapt.
Feel free to forward the list below to any representatives and lawmakers if you concur that these tactics were used:
Rampant Naked Shorting - With the extremely high number of Fail to Delivers (FTID) , short interest being as high as 226% recently, and institutions alone holding a staggering 177% of the total float (likely due in large part to counterfeit shares), signs strongly point to GME being rampant with naked shorts and counterfeit shares. I believe the original goal of shorts was to drive GME to bankruptcy with these naked shorts, using the laddering of naked shorts (aka short ladder attack), executed with the help of counterfeit stock which is a classic and reliable method of driving down the stock price. I believe the GME stock has seen relentlessly aggressive short attacks, especially on the week of Monday February 1st, which drove the stock price down and triggered panic selling.
Ladder Attacks with the help of Dark Pools - Another identified method of ladder attacks was identified to come from crosstrading with darkpools (the stock market has its own private stock exchange where institutions can trade…). Essentially darkpools are private stock markets retail investors do not have access to, where short side funds can purchase securities “off market” and then sell “on-market”, with the effect of creating a lot more downward pressure on the market without the upward pressure from buying.
Illegally masking shorts with synthetic longs. Another tactic shorts are suspected of using in GME is the use of illegally using options to evade short positions in violation of Reg SHO which SEC describes in this risk alert and which I elaborate in this post. Essentially it’s the use of using options to create synthetic longs to illegally and artificially cover and prolong short positions and at same time obscuring the true short interest %. If you consider that it would be far more profitable for shorts to not cover at high prices but instead ladder attack the price and wait for retail investors to lose interest and close their shorts at as low of a price as possible, then you can see why this strategy would be very effective.
Using way out-of-money call options to obscure true short interest. You may have heard about the 43 million worth of 800 dollar calls purchased when the price was 100 and found it odd. Later it was identified as a tactic to cheaply purchase synthetic call options (since at 800 its way out of money) to obscure their short positions (with the added benefit of hedging at 800 if a squeeze does happen)
One thing I want to note, particularly to legislators at the GameStop hearing: Retail investors were not incited to pump GME. Retail investors spotted a unique Short Squeeze opportunity created by the greed of short side hedge funds, whereby GameStop was being abusively naked shorted with the goal of bringing it to bankruptcy, and hedge funds were so greedy about it that they shorted the company with a short interest of 226% of float, meaning A LOT of counterfeit shares were being used to short the company. Retail investors saw this as an opportunity to short squeeze the hedge fund shorters, which is a legal and legitimate investment strategy. The short squeeze would have happened had everyone played fair, but instead, financial institutions who were culpable to the naked shorting intervened and shut down retail buying, hurting the retail investors and successfully manipulating the market. The investment itself was in my opinion a sound decision based on the short squeeze, but in hindsight retail investors did not seriously consider the risk of the market would be blatantly and publicly manipulated and that the market would be rigged against them.
If this post was useful (and I hope it was! Gave up my Friday night to write this for you Apes), please upvote for visibility and share it far and wide. The GameStop hearings could be a first step and hope towards legislative change, and it’s extremely important that the right story is told at those hearings (and by the right story I mean the real truth of what happened.) I hope the truly culpable parties are investigated and brought to justice. Again, I know many of us feel cynical that anything meaning will be done towards finding justice against the lawbreakers in this case, but if you feel even an ounce of injustice or empathy at how retail investors were unfairly harmed in the course of investing in GME, I strongly urge you to contact a legislator associated with the GameStop hearings and bring this to their attention so they can review this case with more complete information. In addition I recommend you to contact the SEC and any journalist you know or via journalist tip lines. It’s not going to be easy but the more awareness we raise the higher the likelihood our voices will be heard and positive change will be made.
As we navigate the rocky waters ahead, I’ll gift you with a favorite quote of mine:
The only difference between a nightmare and a dream is how big your balls are.
🚀🚀🚀
Disclaimer: I am not an investment advisor, I just like the stock.
Ps. If you’ve read to the end, I’ll leave you with a few more thoughts and reminders:
- If I were to distill life into one thing, it would be to never lose hope.
- Remember that if you’ve lost money in any way shape or form, don’t be depressed, money can always be made back and the important thing is to maintain a good attitude.
- Only invest what you can afford to lose.
- Perhaps the most important factor in good investing is patience.
If you’d like to read more about counterfeiting stocks this is a good place to start http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html

TLDR: GameStop’s Congress hearing is on Feb 18th, they need to investigate the Prime Brokers and DTCC for their complicity in enabling naked shorting within GME and by extension, potential collusion to shut down trading on Jan 28th, the day the short squeeze was going to kick off. (stick to the end for an analysis of some illegal tactics short side hedge funds have been using)
Thesis: On the day the retail market for GME shut down on 1/28 (the day the short squeeze would’ve happened had there been no market intervention), DTCC (clearing house monopoly) shut down retail buying in order to protect itself and Prime Brokers (which privately own the DTCC) from being exposed to the consequences of being party to illegal activity. I believe Prime Brokers and DTCC need to be called to the GameStop hearing on February 18th to be questioned for their complicity in enabling illegal naked shorting of the GME stock, as well as potential collusion to shut out retail buyers on 1/28.
In my previous post (which I recommend reading for some context) I explored the subject of rampant illegal naked shorting in GME, and how Prime Brokers (consisting of banks like Goldman, Morgan, etc) and DTCC would be complicit in the naked shorting. This in turn raises the thought experiment that they would be incentivized to do anything possible to prevent the short squeeze from happening on 1/28 because had the short squeeze happened, the shorts would go bankrupt and their Prime Brokers who lent them their naked shorted shares would need to cover the shares. This would not only represent a humongous capital expense for Prime Brokers, the culpability of Prime Brokers (and that of the DTCC) in this situation would also have likely been exposed as well.
A quick primer on what a Prime Broker is: Prime Brokers are essentially the service side of the short- selling business. They lend out securities and cash, you can think of them as the “house” in a casino: They provide a gambler with markers to play and to manage his winnings. According to Matt Taibi, “Under the original concept, if a hedge fund that wanted to short a stock they would first need to “locate” the stock with his Prime Broker but as time passed, Prime Brokers increasingly allowed their hedge-fund customers to use automated systems and “locate” the stock themselves, and what this does is enable short-sellers to sell stock without delivering and thereby perform naked shorts with counterfeit shares. (source: https://web.archive.org/web/20210213125246/https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/). (I highly recommend you read Matt Taibi’s article on naked shorting and how it was used to take down Bear Stearns and Lehman Brothers. There are so many parallels with GME it’s hard to miss. It’s amazing to consider that 12 years after this article was published and brought to public awareness, the problem of naked shorting still exists as a systemic issue.)
Prime Brokers have a long history of being associated with naked shorting. To highlight a few examples, Prime Brokers like Merill Lynch and Goldman have long been implicated for naked shorting Overstock.com (https://www.rollingstone.com/politics/politics-news/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-244035/, https://www.forbes.com/2007/02/02/naked-short-suit-overstock-biz-cx_lm_0202naked.html?sh=271400d1763f). Another example is when Goldman’s Prime Brokerage was implicated by the SEC in 2016 and got away with a small fine of 16 million (Source: https://www.sec.gov/news/pressrelease/2016-9.html). An example that very recently came in the news is a story where CIBC, BOA, UBS and TD Bank Prime Brokerages are accused of facilitating naked short selling and using counterfeit stock to attack and bring the stock price of a company from $34.77 to $1.83 (Source: https://www.securitiesfinancetimes.com/securitieslendingnews/industryarticle.php?article_id=224548).
The DTCC also has a very long history of being associated with naked shorting. The Wall Street Journal noted that 1% of the DTCC’s volume end in failure to deliver which “have put DTCC in the middle of a long-running fight over whether unscrupulous investors are driving down hundreds of small companies' share prices… DTCC has turned a blind eye to the naked-shorting problem. ” (Source: https://www.wsj.com/articles/SB118359867562957720). The DTCC has also had numerous complaints submitted to the SEC for enabling naked shorting (source: https://www.sec.gov/rules/proposed/s72303/decosta122203.htm) and have been sued tens or hundreds of times for assisting naked shorts (source: https://smithonstocks.com/part-3-in-series-on-illegal-naked-shortings-role-in-stock-manipulation-prime-brokers-and-the-dtcc-have-a-troubling-monopoly-on-clearing-and-settling-stock-trades/ and http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html and https://www.wsj.com/articles/SB118359867562957720)
On 1/28 Robinhood received a letter from the DTCC at 4 am requiring them to halt trading or come up with 3 billion dollars, which Robinhood did not have, and therefore with one swoop of the pen the DTCC shut down buy side momentum but strangely allowed selling. Retail investors were shut out of the market and as any student of microeconomics would know, by shutting buy but only allowing sell, the price is bound to fall. Meanwhile while hedge funds were able to keep trading not only in the market but also crosstrade in the dark pools (“private” stock markets that retail is shut out of, more on this later), and use this crucial lifeline given to them by the DTCC to prevent the squeeze from happening that day.
With retail abruptly being shut out from buy (even cash accounts were shut out, which didn’t make sense) and only allowed to sell, almost everyone could smell manipulation was afoot (which triggered the Congress hearing) and the most of the blame was pointed at Robinhood. Personally and in hindsight, I believe Robinhood was just a willing scapegoat. When we think about who had the most to lose if a short squeeze occurred, I’ll narrow it down to three entities, Shorts and their stakeholders (ie Citadel), Prime Brokers and the DTCC.
It’s important to remember that the actual impetus that triggered the shutdown of the market for retail investors came from the DTCC. Working backwards, if you consider that GME was rampantly naked shorted and DTCC and Prime Brokers would have to be complicit in it, I believe the DTCC, Primer Brokers and possibly Citadel (who provides 40% of Robinhood’s revenue) brazenly manipulated the market on 1/28 by shutting down purchasing for retail buyers to prevent the squeeze from being squoze on that day as doing so would be catastrophic for all aforementioned parties involved. I believe that on the upcoming Gamestop Congress hearings the Financial Services Committee needs to call on decision makers of DTCC and Prime Brokers explore their role and complicity in the shut out of retail buyers that day as well as being enablers of naked shorting in GME.
An interesting thought experiment: On 1/28 when the price was 450+ and shorts were likely under 100, if we assume prime brokers allowed naked shorting in GME, then when the squeeze was about to happen (or happening), if Prime Brokers had margin had called the shorts, they would presumably also also gone down because shorts would not be able to pay in that event and the brokers would be holding the bag. By that logic, they have every incentive in this case to NOT to margin call and instead the most logical option would probably would have been to make a backroom deal, which is what I personally think most likely happened.
If you’ve read up to this point, you might be thinking what can I do about this? I am aware that there a lot of cynicism that we can’t do anything, that there will be no justice for retail investors who were harmed this situation, and that institutions and people in power will prevent anything from being done. I feel this sometimes too, but remember:
A single voice can be drowned out, but if we all speak together then we will make our voice heard. Ape Strong Together.
With the hearing coming up on February 18th, I highly recommend you email and tweet the representatives involved in the hearing, as well as your own district representatives, and urge them to read into the factors presented in this post and call the DTCC and Prime Brokers to the hearingl. They need to be questioned on why GME has so many counterfeit shares, failed to deliver, their complicity in naked shorting, and investigated for their role in the retail shut down of 1/28. Below are 4 members of congress I recommend both tweeting and emailing
Alexandria Ocasio-Cortez https://twitter.com/AOC, email: [[email protected]](mailto:[email protected])
Al Green https://twitter.com/repalgreen, email: [[email protected]](mailto:[email protected])
Maxine Waters https://twitter.com/maxinewaters, email: [[email protected]](mailto:[email protected])
Nancy Pelosi Email: https://twitter.com/SpeakerPelosi email: [[email protected]](mailto:[email protected]).
And you can find other members of Financial Services Committee here to reach out to: https://financialservices.house.gov/about/committee-membership.htm
What follows should probably be a separate post, but I will take the opportunity to summarize some of the illegal tactics that shorts have been identified to be using in their war with retail investors. Note that this may not be an exhaustive list and there may be newer tactics deployed in the future. Retail investors might not have the same tricks, resources and willingness to break the law for profit as hedgies do, but my hope and belief is that if we pool our knowledge and analysis, we will figure out their game and effectively adapt.
Feel free to forward the list below to any representatives and lawmakers if you concur that these tactics were used:
Rampant Naked Shorting - With the extremely high number of Fail to Delivers (FTID) , short interest being as high as 226% recently, and institutions alone holding a staggering 177% of the total float (likely due in large part to counterfeit shares), signs strongly point to GME being rampant with naked shorts and counterfeit shares. I believe the original goal of shorts was to drive GME to bankruptcy with these naked shorts, using the laddering of naked shorts (aka short ladder attack), executed with the help of counterfeit stock which is a classic and reliable method of driving down the stock price. I believe the GME stock has seen relentlessly aggressive short attacks, especially on the week of Monday February 1st, which drove the stock price down and triggered panic selling.
Ladder Attacks with the help of Dark Pools - Another identified method of ladder attacks was identified to come from crosstrading with darkpools (the stock market has its own private stock exchange where institutions can trade…). Essentially darkpools are private stock markets retail investors do not have access to, where short side funds can purchase securities “off market” and then sell “on-market”, with the effect of creating a lot more downward pressure on the market without the upward pressure from buying.
Illegally masking shorts with synthetic longs. Another tactic shorts are suspected of using in GME is the use of illegally using options to evade short positions in violation of Reg SHO which SEC describes in this risk alert and which I elaborate in this post. Essentially it’s the use of using options to create synthetic longs to illegally and artificially cover and prolong short positions and at same time obscuring the true short interest %. If you consider that it would be far more profitable for shorts to not cover at high prices but instead ladder attack the price and wait for retail investors to lose interest and close their shorts at as low of a price as possible, then you can see why this strategy would be very effective.
Using way out-of-money call options to obscure true short interest. You may have heard about the 43 million worth of 800 dollar calls purchased when the price was 100 and found it odd. Later it was identified as a tactic to cheaply purchase synthetic call options (since at 800 its way out of money) to obscure their short positions (with the added benefit of hedging at 800 if a squeeze does happen)
One thing I want to note, particularly to legislators at the GameStop hearing: Retail investors were not incited to pump GME. Retail investors spotted a unique Short Squeeze opportunity created by the greed of short side hedge funds, whereby GameStop was being abusively naked shorted with the goal of bringing it to bankruptcy, and hedge funds were so greedy about it that they shorted the company with a short interest of 226% of float, meaning A LOT of counterfeit shares were being used to short the company. Retail investors saw this as an opportunity to short squeeze the hedge fund shorters, which is a legal and legitimate investment strategy. The short squeeze would have happened had everyone played fair, but instead, financial institutions who were culpable to the naked shorting intervened and shut down retail buying, hurting the retail investors and successfully manipulating the market. The investment itself was in my opinion a sound decision based on the short squeeze, but in hindsight retail investors did not seriously consider the risk of the market would be blatantly and publicly manipulated and that the market would be rigged against them.
If this post was useful (and I hope it was! Gave up my Friday night to write this for you Apes), please upvote for visibility and share it far and wide. The GameStop hearings could be a first step and hope towards legislative change, and it’s extremely important that the right story is told at those hearings (and by the right story I mean the real truth of what happened.) I hope the truly culpable parties are investigated and brought to justice. Again, I know many of us feel cynical that anything meaning will be done towards finding justice against the lawbreakers in this case, but if you feel even an ounce of injustice or empathy at how retail investors were unfairly harmed in the course of investing in GME, I strongly urge you to contact a legislator associated with the GameStop hearings and bring this to their attention so they can review this case with more complete information. In addition I recommend you to contact the SEC and any journalist you know or via journalist tip lines. It’s not going to be easy but the more awareness we raise the higher the likelihood our voices will be heard and positive change will be made.
As we navigate the rocky waters ahead, I’ll gift you with a favorite quote of mine:
The only difference between a nightmare and a dream is how big your balls are.
🚀🚀🚀
Disclaimer: I am not an investment advisor, I just like the stock.
Ps. If you’ve read to the end, I’ll leave you with a few more thoughts and reminders:
- If I were to distill life into one thing, it would be to never lose hope.
- Remember that if you’ve lost money in any way shape or form, don’t be depressed, money can always be made back and the important thing is to maintain a good attitude.
- Only invest what you can afford to lose.
- Perhaps the most important factor in good investing is patience.
If you’d like to read more about counterfeiting stocks this is a good place to start http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html

 
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Alexa was sitting cross legged before Sassie, with Aiov lying casually on the German Shepherd’s back. She had a metal bowl in her lap with chunks of fresh meat for Aiov and cooked meat for her large canine protector. It had been a difficult time as the dog had missed Aaron more and more, to the point that she had begun to refuse food. Aiov's enthusiasm, however, seemed to help slightly in countering that refusal, and Alexa had found that feeding them together at least got some food into the lonely Earth ambassador.
She scratched at the dog’s head as Aiov happily chomped on another scrap of meat. “Look at that! You won’t be outdone by a leokit now, will you?” She placed a cube of seared meat before Sassie’s nose. She sniffed it twice before eating. “You’re going to be so spoiled by the time we get him back. We’ll both get in trouble.”
Aiov snuggled into the thick black and tan fur, using her paw to guide the next morsel into her mouth. Sassie managed a few more pieces before turning her head away with a grunt. Satisfied with what she had achieved Alexa gave a few more scraps to Aiov before placing the bowl into the recycler. The loudspeakers throughout the Rinoxian vessel blared a loud message announcing they had now crossed into Hive space and that their readiness was being moved to level three.
Her door chimed. Opening it, she found Allistan in his new Terran Wolves uniform. “You need to come quickly, the Porkchop Express has arrived.”
As she grabbed Aaron's old leather jacket, Sassie immediately rose to follow which caused Aiov to roll to the floor. "You come," she spoke to the dog, then turned to the distinctly unhappy leokit who had just lost her warm pillow. "You stay, sorry.”
They walked briskly through the corridors of the Rinoxian warship towards a secure meeting room which had two Terran Wolves outside the door. Their black uniforms and red collars were easily identifiable and they gave sharp salutes as Alexa approached. “I told you not to salute.”
The two guards lowered their hands sheepishly as the doors opened. Sassie immediately surged past Alexa to happily greet the returning crew members. She moved from Ranjaz to Jaym, receiving many scratches and hugs. Even Eruwenn and Cygna received a quick examination, but she soon stopped when no sign of Aaron could be found. The German Shepherd forlornly returned to Alexa's side as the Awakened took a seat at the meeting table. “Is the room secure?”
Cygna, now in a smart black uniform with white collar, stood. “We have taken additional precautions due to the sensitive information we will be discussing.”
Tilting her head, Alexa took in the Fae’Dan’s new clothing. “You’re one of us now?”
Eruwenn gave a slight chuckle. Aside from Alexa, she was the only one not in uniform. “She lost a game of dalcho, or two.”
“Seven.” Ranjaz said with a wicked grin. “Don’t worry, she’s actually been a fairly competent assistant. Aside from her gambling issues, obviously.”
Her head drooping to look at her feet, Cygna replied, “I swear by Tulseria’s right hand, I will get you back for this!”
The Kittran’s grin grew more predatory. “Wanna bet?”
There was a long table by the wall where Embar was fixing himself a drink, He turned, shaking his head. “I’m not sure I approve of your recruiting techniques.”
The Kittran shrugged. “She’s worth it – even broke the code on this.” He tossed the recovered device onto the table as Embar returned and took his seat opposite him. “And, you’re going to want a stronger drink, General.”
Curiosity piqued, Allistan took his seat, preparing his notepad and pen. “What did you find?”
Ranjaz was about to speak when Eruwenn held up her hand. “I think we should let General Embar read this first. He can take a moment before we all continue.”
Raising an eyebrow, Embar sat down in a nearby chair and connected the device to a non-networked datapad. “Why me?” He began scrolling through the files, tapping on icons and delving deeper. His breathing suddenly stopped, his face contorting. Disbelief morphed into anger, and as his body tensed, anger turned to white-hot rage. He placed the datapad down on the table before him and stood, walking back towards the drinks table. He lowered his head, his body radiating anger as his muscles clenched and unclenched, then raised his fist into the air and slammed it into the table. Bottles, glasses and everything else it had held went crashing to the ground as it buckled under force of his blow. “We’re going to kill every last one of those Sentinel bastards!”
No longer smiling, Ranjaz stood. “You’re Tulseria damned right we are.”
Jaym was sitting silently, but she pulled a rag from her pocket and dabbed at her tears. After they had fled from the casino she had tried to help crack the encryption on the stolen device. Part of her wished they never had, as its contents had disturbed her so much. Now that they had finally caught up with Alexa, Embar and the others who had been on the Rinoxian homeworld, she empathised deeply with the pain this information was bringing. “It’s so awful, I’m so sorry Embar.”
Eruwenn patted the young Arkellian on the shoulder to comfort her as she looked at the Rinoxian. “Please believe me, General Warbringer. The council knew nothing of this.”
Alexa picked up the datapad, using her nanites to more quickly access the information. She grit her teeth, biting back her anger, then passed it quickly to Allistan. “You need to read this. Then we need to plan our next move.” She looked at the back of the unmoving Rinoxian. “Embar?”
Embar slowly turned around, his jaw set, determination in his eyes. “We keep this quiet. We’re on an active mission and need everyone focused on the job at hand.”
Allistan went to click his pen as he read, but with a gasp the pen fell from his fingers. “We can’t keep quiet, the galaxy needs to see this.”
The Rinoxian nodded. “They will. When the time is right.”
 
 
It had been two cycles and the incursion fleet had advanced deep into Hive space. Over half of the force accompanying them were the Rinoxians under their new Galactic Federation commanders. There were over a dozen Galactic Federation ships along with six Gowe destroyers, and a dozen ships from other races including the Niham and Kah’Ree. Admiral Pelar, on board the Blazing Dawn, commanded four Ashi ships including the Righteous Fury.
The smallest craft by far was the Porkchop Express, a speck amongst titans. Its white painted hull, chrome bull bars and bright cartoon logo were a stark contrast to the military ships it accompanied. Sassie was more comfortable now that she was in familiar territory, and slept on a pile of Aaron’s clothes in his quarters.
Allistan and Alexa were sitting opposite Jar’Bek in his small office. The Ashi looked exhausted as he finally put down his datapad. “I’m sorry to have kept you.”
Allistan fidgeted in his seat. “Not at all, was that your mother again?”
Stiffening slightly at the use of the word mother the lawyer forced himself to relax again. “Admiral Pelar has informed us that they have been repeatedly scanned by the Gowe. She’s taking no action, as we’re supposed to be allies, but wanted you to be aware.” Alexa nodded and he continued. “When we arrive at the next system the commanders of each ship have been called to the Hooves of Destiny. Vice-Admiral Koo Ji has requested an in person meeting, with all senior officers.”
There were several pen clicks. “That seems unusual.”
Jar’Bek gave a knowing nod. “Extremely. To remove every ship’s command, behind enemy lines? It makes no sense.”
Alexa pushed her hair back from her face. “The Rinoxians agreed to it?”
The Ashi nodded. “Most of their command have been replaced. Anyway, they outnumber – and outgun – the other ships. Why would they be concerned?”
Allistan’s pen clicked. “They probably just put it down to Gal. Fed. protocols, or fear.”
Jar’Bek nodded. “They’ve had us stopping in random systems to scan. No doubt it’s to delay us, but perhaps also to lower the Rinoxian’s guard?”
Leaning back in her chair, the Awakened considered the options. “Maybe there's another fleet waiting to ambush us? Or following us?”
Allistan twirled his pen in his fingers. “No, no. All eyes are on the border since Aaron’s capture. It must be something else.”
Moving on to her next idea, Alexa asked, “Sabotage?”
The Ashi gave a chuckle. “That is Admiral Pelar’s conclusion. The Gal. Fed. officers have been on board the other ships, and the possibility exists that there are Sentinels working amongst them. They are all in command positions, and will all be leaving. It’s a logical conclusion.”
Allistan’s pen halted its spinning. “The Ashi ships, they can’t have been sabotaged, right?”
The lawyer nodded. “True, but, it wouldn’t matter. Their ships are old and have seen too much action. Those Gowe ships alone are more than they could handle.”
The Fae’Dan sighed and shook his head at the situation they were facing. “We should have brought more ships. The new ones.”
Alexa, staring at the ceiling, spoke softly. “No, we don’t need to show our hand just yet. But send word to Chae’Sol, make sure he has the coordinates.”
Jar’Bek nodded and made a note on his datapad. “What about the others?”
The Awakened closed her eyes. It was times like this she missed her human and his habit of taking charge. “Tell Embar to warn his contacts among the Rinoxians. The others… I have no idea, I just want to sleep.”
Allistan, a stickler for accuracy, replied, “I didn’t think Awakened slept?”
She sat up and gave a half-hearted smile. In an unusual moment of vulnerability, she replied, “I was told you can do anything in a dream. For those moments, we would all be together again.”
Allistan struggled to come up with a response to that, and the Ashi, having noticed this, stepped in to fill the gap in conversation. “We’ll find him. I can’t lose the most profitable client in the galaxy now, can I?”
Now past the moment of awkwardness, the Fae’Dan also answered. “I’m sure he’s fine. In fact, he’s probably already on his way back to us.”
Alexa gave Allistan a withering look. “You think he single-handedly defeated the Hive, stole a ship and managed to figure out how to fly it back here?”
The former Inspector paused to consider it. “No. It will most likely be something even more preposterous. Perhaps he married their Queen?”
The ridiculousness of the idea brought a chuckle to the Awakened. “Maybe. Hopefully nothing that drastic; he’d probably just turn their society upside down with some ridiculous scheme.”
Jar’Bek also smiled. “A little civil unrest, perhaps a few riots? No doubt with merchandise.”
Finally breaking into a broad grin, Alexa replied, “I think we all might be over-estimating him a little.”
 
 
Aaron stood in the trade area of Toivoa station with a contingent of Gardener Royal Guards behind him, Tsy’Lo by his side, and a very angry mob in front of him. Several well-dressed local leaders were dragged from the crowd to stand before him; Mycena, Tricinic, Procyon and a dozen other refugee races were crammed into the triple height area of the station.
One of the leaders staggered towards Aaron. “You! You caused this!”
Aaron, feigning as much innocence as possible, pointed to his chest. “Me?”
One of the Mycena he had met during his time on the station came forward. “We’ve all seen the videos! They kept us in the dark about what is going on out there! The Galactic Federation are coming! Our leaders lied to us!”
The accusatory leader, a Procyon with greying fur, pointed at Aaron. “Your... Your propaganda, has driven them mad! Your lies! They’re destroying the station!”
The human smiled and maintained his innocent expression. “My propaganda?” Several in the crowd held up datapads; Aaron’s smiling face was on every one. “Oh... that propaganda.”
Tsy’Lo tugged on his sleeve. “What did you do?!”
Aaron crouched down slightly. “Remember when I accidentally picked up the kids datapad and you returned it?”
“Yes…” The Tricinic flushed orange as realisation struck. “It wasn’t the child’s datapad!”
Aaron straightened up. “Yeah, thanks for helping bring down society.” He laughed as Tsy’Lo became a very opaque green hue. “Don’t worry, I’ve got an idea.”
The greying Procyon shook his fist at the human. “You better! They should throw you in a cage for the rest of your life for this. Hundreds of celes of peace, destroyed!”
Aaron looked down at the angry alien. “Your peace, not theirs.” He gestured back towards the Gardeners, and walked towards them without waiting for a reply. He raised his hands high, motioning for the unruly mob to settle down. “Alright, alright. Settle down, munchkins. So the wizard’s a liar? Welcome to reality. The Gardeners have been fighting and dying to keep you safe from the flying monkeys, while you all hide in your Emerald City and get on with your lives. That shit ends now. You’re crying out for change? Then welcome to the revolution, baby! We’re opening up the borders, we’re rejoining the rest of the galaxy! No more hiding!”
The crowd was already worked up, and cheering came easily despite the large lack of understanding. The human nodded — he was enjoying this far too much — and then gestured again for quiet. He spoke quietly at first, adding excitement to his voice as it built in power. “So prepare for a chance of a lifetime! Be prepared for sensational news!”
The Procyon official’s mouth opened and closed silently before he managed to shake his mind free of the initial shock of the human’s words. “No! Stop! What are you even saying?”
Aaron didn’t care about the official. He put the palm of his hand on their face, which easily dwarfed it in size, and gently pushed them slowly backwards. He then leapt up onto a crate; his showmanship on camera was nothing to his on-stage presence. “A shining new era is tiptoeing nearer, and where do you feature? Just listen to teacher! You’ve stagnated here for long enough. Lied to and kept in the dark, well, no more!”
The crowd was his, he knew it. The official knew it. Tsy’Lo knew it and was a nervous shade of blue. Aaron clambered from the crate to the roof of a stall, standing high above the crowd. The cheers followed every rambling sentence and, drunk on power, Aaron was loving it. “Spread the word to every planet, every station, every colony and every ship. Change is not coming, it’s here and it is now!”
The crowd roared again, and the desperate official turned to Tsy’Lo. “What in the nine moons is he talking about?”
“I’ll tell you what I’m talking about.” Aaron snapped. He stood looking out over the crowd. “I am the Ambassador of a world called Earth. I have taken ownership of a small star system that is being colonised as we speak. These colonies are a coalition of races, from within the Federation, as well as without. We rule ourselves, but have treaties and agreements with the Federation itself, as well as various individual races within it.”
Several questions were called out from the crowd, but one voice was louder than the others. “How does that help us?”
With a smile, the human walked back and forth across the roof of the stall as he spoke. “Good question my friend.” He pointed vaguely at where the voice had come from. “I do not have contact with my homeworld at this time. To ensure that all of whatever Earth has become would be included we put in place clauses for future territories, dominions, settlements etc, etc…” The crowd was quiet now, trying to follow the human’s explanation. Looking out at the blank faces Aaron realised he needed to get to the point. “Congratulations, you’re now a protectorate of Earth!”

He was met with utter silence. 

Suddenly, there were several angry yells from the crowd, some claiming this was a joke while others were simply confused. The official was the one who dared clamber to the crate below Aaron in order to yell up to him. “Are you insane?”
Aaron’s smile made Tsy’Lo shudder, as it was the same one he had given as he had explained his idea to the Gardener Queen. The human stepped forward to stand at the front of the stall roof. “I declared war on the Gardeners. The war lasted seven Earth minutes, and was quickly resolved when the Queen surrendered to me in person.”
Silence fell once again, and Aaron found himself half-yearning for the sound of crickets to emphasize the moment.
The crowd erupted once more, outrage at the ridiculous claims the strange alien was spewing forth. Tsy’Lo released a deafeningly loud harmonic whistle which was followed by another momentary quiet. They paled as the crowd's attention fell on them. “You need to listen, all of you. He is speaking the truth, sort of. He held the Queen and the Gardeners council hostage with a bomb.” Small grey particles filled the Tricinic at the memory of being used as a weapon. The crowd began to grow rowdy at this news, causing Tsy’Lo to let off another sonic blast. “It is all a human trick; once we are part of his alliance we fall under the treaties he already has in place.”
The crowd looked back up to the human. “Like I said, congratulations. You just walked in through the backdoor of a peace treaty with the Galactic Federation, and over a dozen separate treaties with other races.”
The crowd were now arguing amongst themselves. The official - who Aaron was now mentally calling Gobshite - once again challenged him. “At what cost, though? What do you get out of this?”
The smile of mischief once more graced the human’s lips and Tsy’Lo considered pulling him down from his stage. They had been on their way to the border when news of the riots on Toivoa reached them. Aaron’s presence had been demanded and he had happily accepted. The human looked almost as gleeful as that moment of acceptance when he spoke again. “Me? I get to go home. I get friends with big sticks. I get to trade openly with you, and believe me, I have a lot of crap to sell you.” He chuckled. “You get to be part of the galaxy again. You get to travel and trade. Our rules are simple and fair; everyone is equal under the law. You have exactly the same rights as everyone else who joined us. And the cost?” He paused for effect, making sure they were all paying attention. “You stand on your own two feet.” He glanced around, noting the sheer diversity of the crowd. “Or one foot... or four... Or whatever it is you’re balancing on.”
The crowd was a buzz of conversation, and Gobshite once again chimed in. “You think they’ll let us back without a fight? We can expose them! Those bastards tried to exterminate us!”
The crowd jeered along with the old Procyon. Aaron held up his hands. “Woah, woah. Only some of them. That’s the thing, there are a lot more members now. So here’s the plan: shut up. If you don’t say anything, they sure as shit aren’t going to out themselves, are they? While everyone is staring at the former Hive terror that they all feared, you guys just start working and trading, nice and quiet.”
A few murmurs of agreement came from the crowd. Gobshite, however, was more than a murmur. “You want us to forget our ancestors suffering?”
A little irritated, Aaron was more harsh than he intended. “You’ve wallowed in it long enough. Look at you, hiding for generations, keeping your communications to a minimum to avoid detection. Is this all some master plan as you build an army to seek revenge? Fuck no!” He saw the shame on their faces. “You’re happy to leave this status quo to future generations? You want to remember the suffering of your ancestors, fine, build a fucking statue. But don’t hold back your children to do it.”
The crowd were growing louder again as they discussed his words. “Look!” the human yelled. “I’m not saying you forget, or forgive. I’m saying you keep your mouths shut. We won’t announce your presence to the Federation. Instead, I want those of you looking to start something new to come join the new colonies. No big fanfares, just get on with it. In a place filled with different races, you’ll just be another stranger.”
He saw the crowd looking at each other, and knew was a lot to take in all at once. “We gather evidence, build trust. Get yourselves established, forge friendships and alliances, and become accepted as part of the new colonies. Let those in the know think their past crimes are forgotten. And when we are ready, we burn down their false history and anyone who tries to defend it!”
The crowd cheered once more, and Aaron smiled triumphantly down at Tsy'Lo as he leapt casually from the roof. As he landed, many hands patted his back and many questions were yelled, but it all ceased as one of the Gardeners stepped forward. It was Eridor, as there was no mistaking the red cape he wore. "We need to leave, the Federation have entered our space.”
Next

TLDR: GameStop’s Congress hearing is on Feb 18th, they need to investigate the Prime Brokers and DTCC for their complicity in enabling naked shorting within GME and by extension, potential collusion to shut down trading on Jan 28th, the day the short squeeze was going to kick off. (stick to the end for an analysis of some illegal tactics short side hedge funds have been using)
Thesis: On the day the retail market for GME shut down on 1/28 (the day the short squeeze would’ve happened had there been no market intervention), DTCC (clearing house monopoly) shut down retail buying in order to protect itself and Prime Brokers (which privately own the DTCC) from being exposed to the consequences of being party to illegal activity. I believe Prime Brokers and DTCC need to be called to the GameStop hearing on February 18th to be questioned for their complicity in enabling illegal naked shorting of the GME stock, as well as potential collusion to shut out retail buyers on 1/28.
In my previous post (which I recommend reading for some context) I explored the subject of rampant illegal naked shorting in GME, and how Prime Brokers (consisting of banks like Goldman, Morgan, etc) and DTCC would be complicit in the naked shorting. This in turn raises the thought experiment that they would be incentivized to do anything possible to prevent the short squeeze from happening on 1/28 because had the short squeeze happened, the shorts would go bankrupt and their Prime Brokers who lent them their naked shorted shares would need to cover the shares. This would not only represent a humongous capital expense for Prime Brokers, the culpability of Prime Brokers (and that of the DTCC) in this situation would also have likely been exposed as well.
A quick primer on what a Prime Broker is: Prime Brokers are essentially the service side of the short- selling business. They lend out securities and cash, you can think of them as the “house” in a casino: They provide a gambler with markers to play and to manage his winnings. According to Matt Taibi, “Under the original concept, if a hedge fund that wanted to short a stock they would first need to “locate” the stock with his Prime Broker but as time passed, Prime Brokers increasingly allowed their hedge-fund customers to use automated systems and “locate” the stock themselves, and what this does is enable short-sellers to sell stock without delivering and thereby perform naked shorts with counterfeit shares. (source: https://web.archive.org/web/20210213125246/https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/). (I highly recommend you read Matt Taibi’s article on naked shorting and how it was used to take down Bear Stearns and Lehman Brothers. There are so many parallels with GME it’s hard to miss. It’s amazing to consider that 12 years after this article was published and brought to public awareness, the problem of naked shorting still exists as a systemic issue.)
Prime Brokers have a long history of being associated with naked shorting. To highlight a few examples, Prime Brokers like Merill Lynch and Goldman have long been implicated for naked shorting Overstock.com (https://www.rollingstone.com/politics/politics-news/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-244035/, https://www.forbes.com/2007/02/02/naked-short-suit-overstock-biz-cx_lm_0202naked.html?sh=271400d1763f). Another example is when Goldman’s Prime Brokerage was implicated by the SEC in 2016 and got away with a small fine of 16 million (Source: https://www.sec.gov/news/pressrelease/2016-9.html). An example that very recently came in the news is a story where CIBC, BOA, UBS and TD Bank Prime Brokerages are accused of facilitating naked short selling and using counterfeit stock to attack and bring the stock price of a company from $34.77 to $1.83 (Source: https://www.securitiesfinancetimes.com/securitieslendingnews/industryarticle.php?article_id=224548).
The DTCC also has a very long history of being associated with naked shorting. The Wall Street Journal noted that 1% of the DTCC’s volume end in failure to deliver which “have put DTCC in the middle of a long-running fight over whether unscrupulous investors are driving down hundreds of small companies' share prices… DTCC has turned a blind eye to the naked-shorting problem. ” (Source: https://www.wsj.com/articles/SB118359867562957720). The DTCC has also had numerous complaints submitted to the SEC for enabling naked shorting (source: https://www.sec.gov/rules/proposed/s72303/decosta122203.htm) and have been sued tens or hundreds of times for assisting naked shorts (source: https://smithonstocks.com/part-3-in-series-on-illegal-naked-shortings-role-in-stock-manipulation-prime-brokers-and-the-dtcc-have-a-troubling-monopoly-on-clearing-and-settling-stock-trades/ and http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html and https://www.wsj.com/articles/SB118359867562957720)
On 1/28 Robinhood received a letter from the DTCC at 4 am requiring them to halt trading or come up with 3 billion dollars, which Robinhood did not have, and therefore with one swoop of the pen the DTCC shut down buy side momentum but strangely allowed selling. Retail investors were shut out of the market and as any student of microeconomics would know, by shutting buy but only allowing sell, the price is bound to fall. Meanwhile while hedge funds were able to keep trading not only in the market but also crosstrade in the dark pools (“private” stock markets that retail is shut out of, more on this later), and use this crucial lifeline given to them by the DTCC to prevent the squeeze from happening that day.
With retail abruptly being shut out from buy (even cash accounts were shut out, which didn’t make sense) and only allowed to sell, almost everyone could smell manipulation was afoot (which triggered the Congress hearing) and the most of the blame was pointed at Robinhood. Personally and in hindsight, I believe Robinhood was just a willing scapegoat. When we think about who had the most to lose if a short squeeze occurred, I’ll narrow it down to three entities, Shorts and their stakeholders (ie Citadel), Prime Brokers and the DTCC.
It’s important to remember that the actual impetus that triggered the shutdown of the market for retail investors came from the DTCC. Working backwards, if you consider that GME was rampantly naked shorted and DTCC and Prime Brokers would have to be complicit in it, I believe the DTCC, Primer Brokers and possibly Citadel (who provides 40% of Robinhood’s revenue) brazenly manipulated the market on 1/28 by shutting down purchasing for retail buyers to prevent the squeeze from being squoze on that day as doing so would be catastrophic for all aforementioned parties involved. I believe that on the upcoming Gamestop Congress hearings the Financial Services Committee needs to call on decision makers of DTCC and Prime Brokers explore their role and complicity in the shut out of retail buyers that day as well as being enablers of naked shorting in GME.
An interesting thought experiment: On 1/28 when the price was 450+ and shorts were likely under 100, if we assume prime brokers allowed naked shorting in GME, then when the squeeze was about to happen (or happening), if Prime Brokers had margin had called the shorts, they would presumably also also gone down because shorts would not be able to pay in that event and the brokers would be holding the bag. By that logic, they have every incentive in this case to NOT to margin call and instead the most logical option would probably would have been to make a backroom deal, which is what I personally think most likely happened.
If you’ve read up to this point, you might be thinking what can I do about this? I am aware that there a lot of cynicism that we can’t do anything, that there will be no justice for retail investors who were harmed this situation, and that institutions and people in power will prevent anything from being done. I feel this sometimes too, but remember:
A single voice can be drowned out, but if we all speak together then we will make our voice heard. Ape Strong Together.
With the hearing coming up on February 18th, I highly recommend you email and tweet the representatives involved in the hearing, as well as your own district representatives, and urge them to read into the factors presented in this post and call the DTCC and Prime Brokers to the hearingl. They need to be questioned on why GME has so many counterfeit shares, failed to deliver, their complicity in naked shorting, and investigated for their role in the retail shut down of 1/28. Below are 4 members of congress I recommend both tweeting and emailing
Alexandria Ocasio-Cortez https://twitter.com/AOC, email: [[email protected]](mailto:[email protected])
Al Green Al Green https://twitter.com/repalgreen, email: [[email protected]](mailto:[email protected])
, email: [[email protected]](mailto:[email protected])
Maxine Waters https://twitter.com/maxinewaters, email: [[email protected]](mailto:[email protected])
Nancy Pelosi Email: https://twitter.com/SpeakerPelosi email: [[email protected]](mailto:[email protected]).
And you can find other members of Financial Services Committee here to reach out to: https://financialservices.house.gov/about/committee-membership.htm
What follows should probably be a separate post, but I will take the opportunity to summarize some of the illegal tactics that shorts have been identified to be using in their war with retail investors. Note that this may not be an exhaustive list and there may be newer tactics deployed in the future. Retail investors might not have the same tricks, resources and willingness to break the law for profit as hedgies do, but my hope and belief is that if we pool our knowledge and analysis, we will figure out their game and effectively adapt.
Feel free to forward the list below to any representatives and lawmakers if you concur that these tactics were used:
Rampant Naked Shorting - With the extremely high number of Fail to Delivers (FTID) , short interest being as high as 226% recently, and institutions alone holding a staggering 177% of the total float (likely due in large part to counterfeit shares), signs strongly point to GME being rampant with naked shorts and counterfeit shares. I believe the original goal of shorts was to drive GME to bankruptcy with these naked shorts, using the laddering of naked shorts (aka short ladder attack), executed with the help of counterfeit stock which is a classic and reliable method of driving down the stock price. I believe the GME stock has seen relentlessly aggressive short attacks, especially on the week of Monday February 1st, which drove the stock price down and triggered panic selling.
Ladder Attacks with the help of Dark Pools - Another identified method of ladder attacks was identified to come from crosstrading with darkpools (the stock market has its own private stock exchange where institutions can trade…). Essentially darkpools are private stock markets retail investors do not have access to, where short side funds can purchase securities “off market” and then sell “on-market”, with the effect of creating a lot more downward pressure on the market without the upward pressure from buying.
Illegally masking shorts with synthetic longs. Another tactic shorts are suspected of using in GME is the use of illegally using options to evade short positions in violation of Reg SHO which SEC describes in this risk alert and which I elaborate in this post. Essentially it’s the use of using options to create synthetic longs to illegally and artificially cover and prolong short positions and at same time obscuring the true short interest %. If you consider that it would be far more profitable for shorts to not cover at high prices but instead ladder attack the price and wait for retail investors to lose interest and close their shorts at as low of a price as possible, then you can see why this strategy would be very effective.
Using way out-of-money call options to obscure true short interest. You may have heard about the 43 million worth of 800 dollar calls purchased when the price was 100 and found it odd. Later it was identified as a tactic to cheaply purchase synthetic call options (since at 800 its way out of money) to obscure their short positions (with the added benefit of hedging at 800 if a squeeze does happen)
One thing I want to note, particularly to legislators at the GameStop hearing: Retail investors were not incited to pump GME. Retail investors spotted a unique Short Squeeze opportunity created by the greed of short side hedge funds, whereby GameStop was being abusively naked shorted with the goal of bringing it to bankruptcy, and hedge funds were so greedy about it that they shorted the company with a short interest of 226% of float, meaning A LOT of counterfeit shares were being used to short the company. Retail investors saw this as an opportunity to short squeeze the hedge fund shorters, which is a legal and legitimate investment strategy. The short squeeze would have happened had everyone played fair, but instead, financial institutions who were culpable to the naked shorting intervened and shut down retail buying, hurting the retail investors and successfully manipulating the market. The investment itself was in my opinion a sound decision based on the short squeeze, but in hindsight retail investors did not seriously consider the risk of the market would be blatantly and publicly manipulated and that the market would be rigged against them.
If this post was useful (and I hope it was! Gave up my Friday night to write this for you Apes), please upvote for visibility and share it far and wide. The GameStop hearings could be a first step and hope towards legislative change, and it’s extremely important that the right story is told at those hearings (and by the right story I mean the real truth of what happened.) I hope the truly culpable parties are investigated and brought to justice. Again, I know many of us feel cynical that anything meaning will be done towards finding justice against the lawbreakers in this case, but if you feel even an ounce of injustice or empathy at how retail investors were unfairly harmed in the course of investing in GME, I strongly urge you to contact a legislator associated with the GameStop hearings and bring this to their attention so they can review this case with more complete information. In addition I recommend you to contact the SEC and any journalist you know or via journalist tip lines. It’s not going to be easy but the more awareness we raise the higher the likelihood our voices will be heard and positive change will be made.
As we navigate the rocky waters ahead, I’ll gift you with a favorite quote of mine:
The only difference between a nightmare and a dream is how big your balls are.
🚀🚀🚀
Disclaimer: I am not an investment advisor, I just like the stock.
Ps. If you’ve read to the end, I’ll leave you with a few more thoughts and reminders:
- If I were to distill life into one thing, it would be to never lose hope.
- Remember that if you’ve lost money in any way shape or form, don’t be depressed, money can always be made back and the important thing is to maintain a good attitude.
- Only invest what you can afford to lose.
- Perhaps the most important factor in good investing is patience.
If you’d like to read more about counterfeiting stocks this is a good place to start http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html
Note: This is a re-post for visibility

  [Voiced scene here]
  [The watery depths of darkness greets us.]   Guda: ...Huh...   [The scene shifts to what appears to be the Moon Cell.]   Guda: ...This place is...   [Accompanied by static, Kiara in her third ascension's mermaid cosplay appears before us for a brief second before she disappears and we find ourselves in the middle of a city.]   Guda: ???   [Once again, Kiara appears, this time in her first ascension swimsuit.]   Sessyoin Kiara: Fufu. The meal at the restaurant just now was very delicious. As expected of Master; you have a discerning eye, or perhaps I should say you have heavenly luck. At this point, I'm almost fully sated.   Guda: [1] Sessyoin Kiara-san...!   Kiara: ...Aah. You're calling my name with such a smile on your face again... I am happy about your feelings, but please have patience. We are still in the middle of town...right?   Guda: [2] You're Sessyoin Lily's...!   Kiara: Fufufu. Keep your feigning of ignorance in moderation. I can't guarantee what'll happen otherwise in all sorts of meaning, you see?   Kiara: Now then, since we have filled our stomach, shall we visit our favorite beach? I finally changed into a swimsuit, but I could only try it out at a lake... The one who invited me to the sea while I was lamenting that...was none other than you. I was so happy, I couldn't sleep last night. I might be unable to fall asleep ever again♡ Ju~st kidding☆ Fufufufufu! Since it's a vacation on Valentine's, I'm in high spirits. It might be out of season, but this is a garden of pleasure without any discomfort. That rumored Altar of Perpetual and Everlasting Summer that I've heard of... Umm, if I remember correctly, Luluhawa was its name? I absolutely won't lose to such a wicked thing. I've snuck in there and done my research, after all.   Guda: I see. So today was Valentine's. / I see, you are the night time's Sesshouin...   Kiara: Yes, of course. Please, spend this holiday so you'll have no regrets afterwards, Master.   [We spend the day on the seashore with Kiara, and then, at night...]   Kiara: Swimming at the beach where no one else is around, enjoying the sunlight, and engaging in conversations as we listen to the sound of the waves... It was a very pleasant holiday, Master. I've returned my childlike innocence as I frolicked about. Aah, but, being unable to order a few drinks...would be my only regret. Downing your glasses all night will be a thing for when you're a little older♡ ...Oh. Putting that aside... I might be giving it to you at the very end, but would you accept this...? It's chocolate for Valentine's.   [Kiara's choco acquired!]   Guda: I'll gladly accept it! / I see, it slipped my mind!   Kiara: You being pleased with it is all that matters to me. To commemorate this Summer, I tried to imitate a flower ornament. It might be some plain chocolate compared to what you received from the other Servants... ────Aah, however. If you still find it insufficient...if it still does not satisfy you...if you still want more... There might be more after this...perhaps?   Guda: [1] No such thing, this is more than enough!   Kiara: ────I see. Then this is where it ends. I have been turned down. Yes, Valentine's only lasts one day. It's not something to repeat over and over again for several days. Then, let us return to Chaldea, Master. You have no need for the tranquility of the depths. Please, join hands with everyone and take back our great planet, okay?   [GOOD END]
Guda: [2] ...You are right, it might be a little lacking...   Kiara: ────You wished for it, right? Then close your eyes for a bit. Let my following version guide you even deeper. How cruel to say that pleasant affairs end in an instant. If they can continue, let them do so for eternity. That is what everyone honestly wishes for.   [Suddenly, everything goes white. Then, accompanied by static, images of the Moon Cell and the previous city flashes before our eyes and we find ourselves in an Oriental capital.]   Guda: ────Huh?   [We hear the sound of an approaching bike and Kiara skids to a halt before us in her second ascension's getup.]   Kiara: Oh my. My preferred unsightly pig Master has been foun~d♡ ────Ahem. That's not it. Stop there, you bitch (if female)/swine (if male). Get on your knees and raise your hands. You aren't allowed to resist. If you move even a little, I'll smack you in the ass (if female)/between your legs (if male) with this baton.   Guda: This is also Kiara-san...? / So next is Kiara Police!   [Kiara smiles before she reverts to her previous stern expression.]   Kiara: Shut up. There is no chance for you to explain or a right for you to vindicate yourself. You should have learned in compulsory education that in this town being a Master itself is a sin, right? Moreover, to think you'd be leisurely walking on the main street...are you not aware that you're a piece of trash? You────know what's going to happen next, right?   Guda: Perhaps...going along voluntarily to be questioned by the police? / Could it be...I'll be forcibly detained?   Kiara: Yes, a tiny piece of trash belongs in the trashcan. A miserable pig belongs in the pigpen. And so, you're under arrest~♡ Game over for you, best regards?   [More choco acquired!]   Kiara: Fufufu. I wonder if you'll like this handcuff-shaped chocolate. Now then, the continuation will be happening in solitary confinement, plenty of it. This Saint Graph does not adhere to the master-servant relationship. It is the form a ruthless ruler. I will thoroughly train that lax attitude of yours without any mercy. Yes, even if it will take a year or a decade. As you wished, forever, right?   Guda: Eh...? / A decade...?   [Our vision goes white once again.]   Kiara: Don't you find it strange? Why are the bubbles the Shen spews forth called mirages on the surface? If the bubbles reflect the insides of the shell, what appears on the surface should be simply the clam's muscles. So then, the reason why oases and capitals emerge────is that what's inside the Shen is literally a castle (read as town). ^[1] An ideal world envisioned by the people of the secular world. An earthly paradise without any discomfort. A perfectly convenient and infinitely vast city. This is the insides of the mirage. A different world contained within the palace of the clam. Even so──── For me, it is nothing but a cramped bed, you see?   [Accompanied by the sound of static, we find ourselves at a pool.]   Kiara: How about something of this aspect this time? Though you might already be sick of eating chocolate.   [Even more choco acquired!]   Kiara: Ufufu. Beaches are great, but pools like this are fine too. Well, since the current is too strong, it is not to my liking... Fortunately, the current me is a mermaid as you can see. No matter how many times you drown or how far you are swept away, I can easily scoop you up, you know, Master?   Guda: ............   Kiara: What might be the problem? You seem to be under the weather based on your expression. Could it be...the clam chocolate from before wasn't to your liking? ...As expected, mixing clam with chocolate was dangerous... No, this only happened by a chance, it's just an accident! It's not like I'm better at cooking when I'm in Lily form! ...Oh, that's not what I should be saying. Master? If your stomach hurts, how about we return to the hotel? This is a high-class resort that even has casinos. There is no shortage of entertainment even at the hotel.   Guda: It's about time...   Kiara: Yes?   Guda: If I don't return to Chaldea soon...   Kiara: ─────── ─────── ────Then let us do that. Go ahead and return, Master. I won't stop you. That is. If you can escape?   [We leave behind Kiara and run through the city, the Moon Cell, the beach, and reach the Oriental capital where we encountered Kiara Police.]   Guda: ────pant pant──── ────No good, this city, is way too vast────   [The ground rumbles and *the faint image of Kiara we could see in the sky all this time comes into view and Kiara's voice echoes out.]*   Kiara: ────Pfft. Fufu, ufufu, aah, how funny! Just what are you talking about when you are so out of breath? This is an immensely vast world. After all, this is next to my pillow. It is a castle that would be sent flying if I were to blow on it.   Guda: ────Just what, is that────   Kiara: After you take refuge in illusions, you won't be able to leave. ...Indeed, I also find it regrettable. To think you'd fall so deep after being bewitched by the sweetness of sugar. I can't view you as Master anymore. You're like an ant that ran around restlessly and separated from its colony. I wonder if I should cover you in chocolate and eat you.   [The ground rumbles once again.]   Kiara: Fufu, of course, that was just a joke. This is an earthly paradise, inside the dream released by the Shen. If you are fine with empty illusions, here you will be granted tranquility lasting until your death, no, lasting forevermore without you being able to die. Will you disappear along with the illusions in a single breath from me or will you cling to my fingers seeking salvation──── Regardless of what you choose, there is no way for you to return to reality. Resign yourself to your fate, Master.   [A pink mist fills our vision.]   Kiara: Your fall will lead to the Heaven of Pleasure. The Hell of the woman who captivates her prey. ...Fufu, you wish you hadn't gone to something like the Palace of the Dragon King, right?   [BAD END]
(Moral of the story: Don't be greedy. Or Kiara will trap you in illusions and toy with you for eternity.)

Bond CE

A Single Summer's Mirage Set
Valentine's chocolate from Sessyoin Kiara (MoonCancer).
Chocolates matching each stage of ascension are stored inside the Tamateba^[2] ......correction, a multi-layered lunch box. You can eat any of the "flowers floating at the waterside", "handcuffs" and "shellfish" that you prefer.
However, moderation is important for everything. If you eat just one or two kinds, the boddhisatva will watch over you with a charming smile, but if you display an unsatiable desire where you eat everything at once────
「Fufufu, what's stored inside the box might not be only chocolate, you know?」
Translator notes: [1] "Mirage" is written with the kanji for "Shen" "emission/spirit/mind" and "building/tower", so mirages are "buildings created of what the Shen emits", I guess? [2] The narration was gonna say Tamatebako before it cut off.

TLDR: GameStop’s Congress hearing is on Feb 18th, they need to investigate the Prime Brokers and DTCC for their complicity in enabling naked shorting within GME and by extension, potential collusion to shut down trading on Jan 28th, the day the short squeeze was going to kick off. (stick to the end for an analysis of some illegal tactics short side hedge funds have been using)
Thesis: On the day the retail market for GME shut down on 1/28 (the day the short squeeze would’ve happened had there been no market intervention), DTCC (clearing house monopoly) shut down retail buying in order to protect itself and Prime Brokers (which privately own the DTCC) from being exposed to the consequences of being party to illegal activity. I believe Prime Brokers and DTCC need to be called to the GameStop hearing on February 18th to be questioned for their complicity in enabling illegal naked shorting of the GME stock, as well as potential collusion to shut out retail buyers on 1/28.
In my previous post (which I recommend reading for some context) I explored the subject of rampant illegal naked shorting in GME, and how Prime Brokers (consisting of banks like Goldman, Morgan, etc) and DTCC would be complicit in the naked shorting. This in turn raises the thought experiment that they would be incentivized to do anything possible to prevent the short squeeze from happening on 1/28 because had the short squeeze happened, the shorts would go bankrupt and their Prime Brokers who lent them their naked shorted shares would need to cover the shares. This would not only represent a humongous capital expense for Prime Brokers, the culpability of Prime Brokers (and that of the DTCC) in this situation would also have likely been exposed as well.
A quick primer on what a Prime Broker is: Prime Brokers are essentially the service side of the short- selling business. They lend out securities and cash, you can think of them as the “house” in a casino: They provide a gambler with markers to play and to manage his winnings. According to Matt Taibi, “Under the original concept, if a hedge fund that wanted to short a stock they would first need to “locate” the stock with his Prime Broker but as time passed, Prime Brokers increasingly allowed their hedge-fund customers to use automated systems and “locate” the stock themselves, and what this does is enable short-sellers to sell stock without delivering and thereby perform naked shorts with counterfeit shares. (source: https://web.archive.org/web/20210213125246/https://www.rollingstone.com/feature/wall-streets-naked-swindle-194908/). (I highly recommend you read Matt Taibi’s article on naked shorting and how it was used to take down Bear Stearns and Lehman Brothers. There are so many parallels with GME it’s hard to miss. It’s amazing to consider that 12 years after this article was published and brought to public awareness, the problem of naked shorting still exists as a systemic issue.)
Prime Brokers have a long history of being associated with naked shorting. To highlight a few examples, Prime Brokers like Merill Lynch and Goldman have long been implicated for naked shorting Overstock.com (https://www.rollingstone.com/politics/politics-news/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-244035/, https://www.forbes.com/2007/02/02/naked-short-suit-overstock-biz-cx_lm_0202naked.html?sh=271400d1763f). Another example is when Goldman’s Prime Brokerage was implicated by the SEC in 2016 and got away with a small fine of 16 million (Source: https://www.sec.gov/news/pressrelease/2016-9.html). An example that very recently came in the news is a story where CIBC, BOA, UBS and TD Bank Prime Brokerages are accused of facilitating naked short selling and using counterfeit stock to attack and bring the stock price of a company from $34.77 to $1.83 (Source: https://www.securitiesfinancetimes.com/securitieslendingnews/industryarticle.php?article_id=224548).
The DTCC also has a very long history of being associated with naked shorting. The Wall Street Journal noted that 1% of the DTCC’s volume end in failure to deliver which “have put DTCC in the middle of a long-running fight over whether unscrupulous investors are driving down hundreds of small companies' share prices… DTCC has turned a blind eye to the naked-shorting problem. ” (Source: https://www.wsj.com/articles/SB118359867562957720). The DTCC has also had numerous complaints submitted to the SEC for enabling naked shorting (source: https://www.sec.gov/rules/proposed/s72303/decosta122203.htm) and have been sued tens or hundreds of times for assisting naked shorts (source: https://smithonstocks.com/part-3-in-series-on-illegal-naked-shortings-role-in-stock-manipulation-prime-brokers-and-the-dtcc-have-a-troubling-monopoly-on-clearing-and-settling-stock-trades/ and http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html and https://www.wsj.com/articles/SB118359867562957720)
On 1/28 Robinhood received a letter from the DTCC at 4 am requiring them to halt trading or come up with 3 billion dollars, which Robinhood did not have, and therefore with one swoop of the pen the DTCC shut down buy side momentum but strangely allowed selling. Retail investors were shut out of the market and as any student of microeconomics would know, by shutting buy but only allowing sell, the price is bound to fall. Meanwhile while hedge funds were able to keep trading not only in the market but also crosstrade in the dark pools (“private” stock markets that retail is shut out of, more on this later), and use this crucial lifeline given to them by the DTCC to prevent the squeeze from happening that day.
With retail abruptly being shut out from buy (even cash accounts were shut out, which didn’t make sense) and only allowed to sell, almost everyone could smell manipulation was afoot (which triggered the Congress hearing) and the most of the blame was pointed at Robinhood. Personally and in hindsight, I believe Robinhood was just a willing scapegoat. When we think about who had the most to lose if a short squeeze occurred, I’ll narrow it down to three entities, Shorts and their stakeholders (ie Citadel), Prime Brokers and the DTCC.
It’s important to remember that the actual impetus that triggered the shutdown of the market for retail investors came from the DTCC. Working backwards, if you consider that GME was rampantly naked shorted and DTCC and Prime Brokers would have to be complicit in it, I believe the DTCC, Primer Brokers and possibly Citadel (who provides 40% of Robinhood’s revenue) brazenly manipulated the market on 1/28 by shutting down purchasing for retail buyers to prevent the squeeze from being squoze on that day as doing so would be catastrophic for all aforementioned parties involved. I believe that on the upcoming Gamestop Congress hearings the Financial Services Committee needs to call on decision makers of DTCC and Prime Brokers explore their role and complicity in the shut out of retail buyers that day as well as being enablers of naked shorting in GME.
An interesting thought experiment: On 1/28 when the price was 450+ and shorts were likely under 100, if we assume prime brokers allowed naked shorting in GME, then when the squeeze was about to happen (or happening), if Prime Brokers had margin had called the shorts, they would presumably also also gone down because shorts would not be able to pay in that event and the brokers would be holding the bag. By that logic, they have every incentive in this case to NOT to margin call and instead the most logical option would probably would have been to make a backroom deal, which is what I personally think most likely happened.
If you’ve read up to this point, you might be thinking what can I do about this? I am aware that there a lot of cynicism that we can’t do anything, that there will be no justice for retail investors who were harmed this situation, and that institutions and people in power will prevent anything from being done. I feel this sometimes too, but remember:
A single voice can be drowned out, but if we all speak together then we will make our voice heard. Ape Strong Together.
With the hearing coming up on February 18th, I highly recommend you email and tweet the representatives involved in the hearing, as well as your own district representatives, and urge them to read into the factors presented in this post and call the DTCC and Prime Brokers to the hearingl. They need to be questioned on why GME has so many counterfeit shares, failed to deliver, their complicity in naked shorting, and investigated for their role in the retail shut down of 1/28. Below are 4 members of congress I recommend both tweeting and emailing
Alexandria Ocasio-Cortez https://twitter.com/AOC, email: [[email protected]](mailto:[email protected])
Al Green https://twitter.com/repalgreen, email: [[email protected]](mailto:[email protected])
Maxine Waters https://twitter.com/maxinewaters, email: [[email protected]](mailto:[email protected])
Nancy Pelosi Email: https://twitter.com/SpeakerPelosi email: [[email protected]](mailto:[email protected]).
And you can find other members of Financial Services Committee here to reach out to: https://financialservices.house.gov/about/committee-membership.htm
What follows should probably be a separate post, but I will take the opportunity to summarize some of the illegal tactics that shorts have been identified to be using in their war with retail investors. Note that this may not be an exhaustive list and there may be newer tactics deployed in the future. Retail investors might not have the same tricks, resources and willingness to break the law for profit as hedgies do, but my hope and belief is that if we pool our knowledge and analysis, we will figure out their game and effectively adapt.
Feel free to forward the list below to any representatives and lawmakers if you concur that these tactics were used:
Rampant Naked Shorting - With the extremely high number of Fail to Delivers (FTID) , short interest being as high as 226% recently, and institutions alone holding a staggering 177% of the total float (likely due in large part to counterfeit shares), signs strongly point to GME being rampant with naked shorts and counterfeit shares. I believe the original goal of shorts was to drive GME to bankruptcy with these naked shorts, using the laddering of naked shorts (aka short ladder attack), executed with the help of counterfeit stock which is a classic and reliable method of driving down the stock price. I believe the GME stock has seen relentlessly aggressive short attacks, especially on the week of Monday February 1st, which drove the stock price down and triggered panic selling.
Ladder Attacks with the help of Dark Pools - Another identified method of ladder attacks was identified to come from crosstrading with darkpools (the stock market has its own private stock exchange where institutions can trade…). Essentially darkpools are private stock markets retail investors do not have access to, where short side funds can purchase securities “off market” and then sell “on-market”, with the effect of creating a lot more downward pressure on the market without the upward pressure from buying.
Illegally masking shorts with synthetic longs. Another tactic shorts are suspected of using in GME is the use of illegally using options to evade short positions in violation of Reg SHO which SEC describes in this risk alert and which I elaborate in this post. Essentially it’s the use of using options to create synthetic longs to illegally and artificially cover and prolong short positions and at same time obscuring the true short interest %. If you consider that it would be far more profitable for shorts to not cover at high prices but instead ladder attack the price and wait for retail investors to lose interest and close their shorts at as low of a price as possible, then you can see why this strategy would be very effective.
Using way out-of-money call options to obscure true short interest. You may have heard about the 43 million worth of 800 dollar calls purchased when the price was 100 and found it odd. Later it was identified as a tactic to cheaply purchase synthetic call options (since at 800 its way out of money) to obscure their short positions (with the added benefit of hedging at 800 if a squeeze does happen)
One thing I want to note, particularly to legislators at the GameStop hearing: Retail investors were not incited to pump GME. Retail investors spotted a unique Short Squeeze opportunity created by the greed of short side hedge funds, whereby GameStop was being abusively naked shorted with the goal of bringing it to bankruptcy, and hedge funds were so greedy about it that they shorted the company with a short interest of 226% of float, meaning A LOT of counterfeit shares were being used to short the company. Retail investors saw this as an opportunity to short squeeze the hedge fund shorters, which is a legal and legitimate investment strategy. The short squeeze would have happened had everyone played fair, but instead, financial institutions who were culpable to the naked shorting intervened and shut down retail buying, hurting the retail investors and successfully manipulating the market. The investment itself was in my opinion a sound decision based on the short squeeze, but in hindsight retail investors did not seriously consider the risk of the market would be blatantly and publicly manipulated and that the market would be rigged against them.
If this post was useful (and I hope it was! Gave up my Friday night to write this for you Apes), please upvote for visibility and share it far and wide. The GameStop hearings could be a first step and hope towards legislative change, and it’s extremely important that the right story is told at those hearings (and by the right story I mean the real truth of what happened.) I hope the truly culpable parties are investigated and brought to justice. Again, I know many of us feel cynical that anything meaning will be done towards finding justice against the lawbreakers in this case, but if you feel even an ounce of injustice or empathy at how retail investors were unfairly harmed in the course of investing in GME, I strongly urge you to contact a legislator associated with the GameStop hearings and bring this to their attention so they can review this case with more complete information. In addition I recommend you to contact the SEC and any journalist you know or via journalist tip lines. It’s not going to be easy but the more awareness we raise the higher the likelihood our voices will be heard and positive change will be made.
As we navigate the rocky waters ahead, I’ll gift you with a favorite quote of mine:
The only difference between a nightmare and a dream is how big your balls are.
🚀🚀🚀
Disclaimer: I am not an investment advisor, I just like the stock.
Ps. If you’ve read to the end, I’ll leave you with a few more thoughts and reminders:
- If I were to distill life into one thing, it would be to never lose hope.
- Remember that if you’ve lost money in any way shape or form, don’t be depressed, money can always be made back and the important thing is to maintain a good attitude.
- Only invest what you can afford to lose.
- Perhaps the most important factor in good investing is patience.
If you’d like to read more about counterfeiting stocks this is a good place to start http://counterfeitingstock.com/CS2.0/CounterfeitingStock.html

Your 14-minute Thursday report in 3497 words. Part 1.

anti-corruption: Defense Ministry official busted with bribery & tampering with draft during war

NSS report says: a Colonel, who had oversight over subdivisions, received a ֏975K bribe from a conscript to transfer him to another location on Sep-13-2020. Part of the bribe was transferred to his online gambling account.
When the war began, a draft was declared and recruits began training at a location in Armenia. The Colonel took a ֏1.2M bribe from a soldier in exchange for not sending him to the front lines.
During the winter draft, the Colonel took a ֏5.2M bribe from another conscript and used his connections to send him to the desired service location. A similar ֏1M bribe was requested on January 6th from another recruit.
The Colonel took another ֏1.4M bribe to help promote a conscript and allow him to work at a hospital instead of regular service.
On October 22nd, during the war, the Colonel decided to help a friend move from bordering Khndzoresk (Syunik) hospital back to Yerevan. As a result, the clinic became understaffed and couldn't fulfill its duties. Moreover, the Colonel then helped the same friend not to be deployed on Syunik borders as a soldier and instead to handle tasks in the rear, on October 26th, in exchange for a ֏300K bribe.
On October 13th, during the war, the Colonel and his accomplices wanted to help a soldier to leave Artsakh. When they learned that the latter was already on the "deserted" list, they took steps to remove him from the list.
Then, he learned that his friends' sons received a draft notice, and use his connections to remove them from the draft list.
After the war, on Dec-13, a friend asked the Colonel to make sure that his son, who was serving in Lusakert, wasn't sent to the front lines. The Colonel contacted the Lusakert facility but learned that the soldier was not among those who were supposed to be sent to the front lines. Nonetheless, the Colonel decided to defraud his friend by claiming that "he took care of it", and received a ֏200K bribe.
The colonel and over a dozen others were arrested. Illegal weapons were found under their possession. The investigation continues to expose other possible suspects.
https://youtu.be/ifo13WJLpsU
https://armenpress.am/arm/news/1042334.html

bill: harsher punishment for treason, spying, espionage

BHK MPs drafted a bill to increase punishment for traitors, spies, passing of state secrets. They want to raise the maximum punishment from 15 years to 20-life. The authors explained the move by citing many media reports about alleged "treason" incidents.
The bill was discussed at a relevant Parliamentary committee. The chairman QP MP Vladimir said he supports life imprisonment as the minimum punishment. However, during the discussion, they agreed to settle on 15-20 years plus property confiscation, or a life sentence.
The committee found the espionage punishment too harsh and asked the bill author to reduce it from 15 to 12 years. The BHK author agreed.
The bill was approved unanimously and will be debated/voted on the Parliament floor later.
https://armenpress.am/arm/news/1042354.html

Jalal is back with another position

The wounded ex-Artsakh army commander Jalal Harutyunyan will serve as the Republic of Armenia's Defense Ministry's Head of the Military Control Service. He will replace General Movses Mosi Hakobyan who quit on November 18th.
https://armenpress.am/arm/news/1042353.html

Russian-Turkish ceasefire monitoring group begins operations

Russian troops are using ORLAN-10 and FORPOST drones to monitor Am-AZ troop locations and movements.
https://youtu.be/ToSLqUDj6OE
https://factor.am/335089.html

ECHR received Armenia's complaint against Azerbaijan regarding 228 POWs / Azeris counter-claim for 13 POWs

Armenian families submitted a petition to ECHR to require Azerbaijan to provide information regarding 228 individuals. Azeris want to know data about 13 people.
(From the language it is unclear to me whether the petition is for confirmed POWs, or it also includes families of missing soldiers who want to know whether their relatives are POWs. Likely the former.)
https://armenpress.am/arm/news/1042406.html

Red Cross visited 4 Armenian POWs in Azerbaijan

They were able to establish contact with families.
https://armenpress.am/arm/news/1042428.html

Russia expects UNESCO to soon visit Armenian monuments that went under Azeri control

https://factor.am/335437.html

Russia removed tomato import ban on 13 Armenian firms

Russian regulator will allow 13 Armenian sellers to export tomato and pepper to Russia again after earlier finding a food virus in them. A similar ban was implemented against Azeri tomatoes.
https://armenpress.am/arm/news/1042433.html

US Congressman demands an explanation from the US ambassador to Azerbaijan over "congratulatory" statement

Rep. Bred Sherman wants to know why the US ambassador to Azerbaijan Lee Litzenberger congratulated Azerbaijan's Economy Minister with "de-occupying territories and US's willingness to aid Azerbaijan with rebuilding those territories". He reminded the US officials that the US is a member of the Minsk Group and should take steps to ensure Artsakh's safety and prevention of a new war.
Bred Sherman praised Biden's appointee Anthony Blinken for stating that the US will review its military assistance to Azerbaijan after the latest war in Artsakh.
Artsakh MFA yesterday released a statement urging countries, officials, and organizations to refrain from such "congratulatory" statements.
https://armenpress.am/arm/news/1042370.html

de-occupy Hadrut NGO

... aims to help 13,500 Hadrut residents who lost their homes during the war. It was founded during the war by activists who held protests in front of various embassies. In the early days, they received aid from President Sarkissian's office. The latter gave shelter to 25 families.
Today the NGO aims to help refugees with employment, while simultaneously lobbying for Minsk Group to de-occupy Hadrut so residents can return. "I hope that one day our NGO will shut down because Hadrut is no longer occupied," said co-founder Meri Davtyan.
https://armenpress.am/arm/news/1042286.html

govt session: financial aid for Syunik border villagers

The government approved a new aid package for residents of Syunik's Shurnukh and Vorotan villagers. Those who lost their homes will qualify for the same aid package as Artsakh refugees: one-time ֏300K payment plus monthly ֏65K payments for 6 months. There is another pending aid package to build new houses for them.
Context: Two dozen houses in Vorotan and Shurnukh went under Azeri control because they were built on the Azeri side of the internationally-recognized borders.
https://armenpress.am/arm/news/1042362.html

bill: disability ranking to be replaced with degrees of functionality impairment

The government approved a bill, yet to be approved by Parliament, to reform the disability system. The disability assessment process will analyze the person's level of functional impairment while taking into account surrounding conditions.
"Today, the system is run under a 1993 law that does not do a comprehensive assessment of the surrounding environment, person's ability to function in public life," says the govt.
The draft bill will repeal the 1-3 Categories and Disabled Child category. A person's functionality impairment degrees will be light, medium, heavy, or deep. Disability will no longer be considered a permanent health problem. The assessment will be based not only on the factor of health problems but also on the environmental factors of the person's activity and participation in public life.
Healthcare and Social Ministries, NGOs, the UN, and the EU worked together to create and test an assessment methodology.
https://armenpress.am/arm/news/1042365.html
Tags: #DisabilityLaw #disabled

bill: require unknown Telegram/Facebook media channel owners identified before "linking" by mass media

QP MPs want to require social media channel operators identified before a "mainstream media" can link to them. It doesn't restrict citing "anonymous sources", however. It also requires outlets to disclose sources of revenues for transparency. Read yesterday's news for context and arguments in favor or against it.. The debate continued today.
QP MP Arthur: For example, a legitimate news organization with an editorial staff of 30 people generates information, holds interviews, etc., while a Telegram channel that we do not know where it is managed from and by whom, begins to disseminate sensationalized information and over time becomes more "legitimate" than real media outlets because media outlets "advertised" them.
This is also a national security risk because it is very possible that such sources are being operated by an adversary country to spread instability and an atmosphere of fear in the country. //
The co-author criticized the critics who "claimed that the bill intends to ban anonymous sources. That's not true. This also won't affect the protection of journalists' source secrecy."
https://armenpress.am/arm/news/1042357.html
If you're interested in more debates:
https://youtu.be/MTHwRa4YjgY , https://youtu.be/ThDNVwZYEp8 , https://youtu.be/S6C_NocS9N0 , https://youtu.be/3_-i2Z23ubI , https://youtu.be/wiPnmfeLNJ8
Tags: #MediaLaw #TelegramLaw #FreeSpeech

rumors and rebuttals: Artsakh army isn't being dissolved

Serj's won-in-law Mishik earlier circulated rumors that were denied by state officials. Today, Kocharyan-ally Vitali Balasanyan, who serves as Artsakh's Security Council chief, confirmed that the army isn't "disintegrating." After the restructuring process, there will be subdivisions with professional contractors, he said.
https://armenpress.am/arm/news/1042344.html

rumors and rebuttals: Azeri flag won't fly over Artsakh govt buildings

Vitalik Balasanyan also denied rumors about Azeri flags being installed on Artsakh govt buildings in Stepanakert.
https://armenpress.am/arm/news/1042344.html

rumors and rebuttals: Azeri families won't resettle in Stenapakert / none are shopping in market

Vitalik Balasanyan said there are false rumors about two districts in Stepanakert being populated by Azeris, and Azeris allegedly freely shopping in Stepanakert market.
"Dear citizens of Artsakh, on behalf of the authorities of the Artsakh Republic, I assure you that despite the irreparable losses inflicted on us as a result of the war, the state is always committed to fulfilling its responsibilities to ensure the security and normal life of the population. Accordingly, I urge you not to pay attention to the false news. Everything is being done to create and expand the necessary conditions for a dignified life of the people of Artsakh."
https://armenpress.am/arm/news/1042344.html

rumors and rebuttals: Artsakh envoy won't stop operating in Russia

The Permanent Representation of the Artsakh Republic in Russia will not be terminated, said the Artsakh govt in response to rumors.
https://armenpress.am/arm/news/1042367.html

rumors and rebuttals: no single currency in EAEU trade bloc

EAEU would like to inform you that you've been misled about alleged plans to establish a single currency among member-states.
https://armenpress.am/arm/news/1042427.html

location "Hollywood, Yerevan, Armenia"

There is a district called Hollywood in Yerevan, Armenia. Gamblers were caught running an underground casino in there. This is the second such bust in the past few months. The police say ֏5.5B in damages was done to the state.
https://youtu.be/sp0Sb--e_ms?t=60
https://factor.am/335320.html

anti-corruption: prosecutors charge education officials with ֏1.2B auction shenanigans

Prosecutors said: State Oversight Committee (SOC) audited the "National Center for Educational Technology" government-affiliated agency's finances between 2013-2020. Every year, the agency submitted a report on the work done by them towards servicing the education system. The bill was ֏700M annually.
It was revealed that between 2012-2015, they granted an auction-based contract to the same company. It received a combined ֏2.8B in funding. The law requires the auction-holding officials to examine the market and take other steps before the auction. They failed to do so.
Later, during 2017-2019, the same company was selected to do the job, but this time it was only paid ֏300-400M annually, far lower than during the previous years.
֏1.2B in damages was done to the state. A felony case is launched.
https://armenpress.am/arm/news/1042389.html

re: Armenia's $750M eurobond sale / lowest % in history / $3B demand by investors / economy news

Read yesterday's news for context.
Pashinyan: The issuance of $750M eurobonds is a strong positive signal for the start of the economic year. The issuance was done under the most favorable conditions in the history of our republic, with the lowest 3.8% percentage rate. Our previous record was in 2019 at 4.2%. The demand was for $3B but we decided to issue only $0.750B.
First, it provides a guarantee of macroeconomic stability. Second, this is the first serious signal of overcoming the post-war economic shock, which shows that international investors have confidence in the economic future of Armenia and the policy pursued by the government. //
Economy Minister Janjughazyan: this was part of our long-term plan and we had planned to do it while drafting the 2021 budget. We planned to issue fewer bonds but decided to add $250M because of favorable terms. We plan to use that extra cash towards the stabilization deposit, as a safety pad, to be used throughout the year if necessary.
As long as our budget has a deficit we will have to borrow. But this is only part of the story; the country's overall debt burden is calculated based on various indicators. So far Armenia has been rated as a country with a lower debt burden.
https://armenpress.am/arm/news/1042351.html, https://armenpress.am/arm/news/1042352.html , https://armenpress.am/arm/news/1042363.html , https://armenpress.am/arm/news/1042393.html

how many people did leave and arrive after reopening air traffic with Russia?

The governments of Armenia and Russian worked on an "app" to allow mutual travel after taking a test. By February 15th, there will be 4-route flights in 2 directions. There were several flights in the past few days.
3900 left and 3400 arrived. 1423 Armenian citizens left and 1263 Armenian citizens arrived. "More people were willing to leave in December than today," noted Diaspora Committee chief Sinanyan.
"Some people flew to Russia but had to return due to a problem. This wasn't due to the COVID app implemented by us. Preliminary data shows that they went to Russia with a paper QP code which raised the suspicion of Russian authorities. We will work with them to resolve this," said Deputy PM Mher. (say what??)
"We need to better inform the public about the existence of this app. Restoring routine flights will help the tourism industry," said PM Pashinyan.
https://armenpress.am/arm/news/1042358.html , https://armenpress.am/arm/news/1042383.html

Pashinyan about the suspended Amulsar gold mining project

He repeated his earlier position that "Decisions must be made that take into account Armenia's best interests."
"The mining industry plays a very important role in the development of Armenia's economy, including in the security context."
"We must make decisions to make investment programs acceptable for the Armenian public while taking into account interests of Republic of Armenia."
https://armenpress.am/arm/news/1042368.html

COVID stats

1829 tested. 147 infected. 352 healed. 11 deaths. 4637 active.
"We're negotiating for vaccines via COVAX global initiative. Separately, we're negotiating with Russia for Sputnik-V. Vaccines should be available in March. It will be targeted at specific groups. It won't be mandatory," said Healthcare Minister Avanesyan.
https://armenpress.am/arm/news/1042341.html , https://youtu.be/vXz3pHx1BlM?t=92

the consumer market price increase in the past 12 months

Armenia's consumer market inflation was +4.5% from January to January. Food +6.4%. Alcohol & tobacco +10.8%. Clothing +2.6%. Utilities +0.6%. Appliances +5.8%. Healthcare +5.6%. Transport +5.7%. Telecom +0.5%. Leisure & culture -0.8%. Education +2%. Dining +1.6%. Misc +3.5%.
https://armenpress.am/arm/news/1042323.html

Parliament MP stops a citizen's suicide attempt

Someone tried to jump from Kievyan bridge. QP MP Gor Gevorgyan was nearby and stopped the attempt. The police took the distressed person to a station.
https://armenpress.am/arm/news/1042329.html

psychological support will be provided to war participants and the public

Emergency Ministry says 15-30% of people have PTSD after the war. Today the government approved a plan to provide psychological aid to war participants and others. The target group includes families of missing people, POWs and their families, those who received disabilities, families of those who died, those who fought in the war, IDPs, civilians who were affected in any way. The program will work in Armenia and Artsakh.
The government will purchase services from experienced mental health service agencies.
https://armenpress.am/arm/news/1042403.html

Armenia will grow industrial marijuana on mass industrial scale / incentive to boost land utilization

Hemp is a type of weed that contains less of the substance that makes you feel high. The government wants to grow industrial hemp on a mass scale to boost mood land utilization and revenues.
Pashinyan: this is going to open room for many speculations. It's important to present the project in detail so the public will have a full understanding of what is being done. Unfortunately, "hemp" is interpreted as something else, while in reality, it is a very important industrial raw material. The growing process has risks but there are oversight mechanisms that have been tested in many countries.
Deputy PM Avinyan: the US, Russia, and China have a great experience with industrial hemp production. The practice was examined by the Economy Ministry. We're talking about industrial production only. It will significantly activate agricultural land utilization. Today, 40% of lands are gone unused. This is part of our plan to boost the production of high-value agricultural products.
https://youtu.be/ssZgr2DR3DM?t=7
https://www.healthline.com/health/hemp-vs-marijuana#marijuana
https://armenpress.am/arm/news/1042372.html

Education Minister says the "controversial" parts of Church/History merger were "resolved"

Education Ministry wants to merge the school subjects "Armenian Church History" and "Armenian History". Critics said it will shrink the church-related materials too much, others called it treason, while others supported the decision, stating that it's all part of our history and having a separate class is inefficient.
Education Minister Dumanyan says he met colleagues at the National Academy of Sciences and they resolved the conflicts "that caused a noise earlier." He will reveal details soon.
https://armenpress.am/arm/news/1042379.html , https://youtu.be/V0sC3dx-gzU

Major education reforms: "education alone will not solve all problems, but there is no problem that can be solved without an education"

... said PM Pashinyan during a govt session while discussing education reforms. Kids in 1-5 grades will no longer receive grades; tt will be pass or no pass (still needs Parliamentary approval). "There will be a criticism. How can you not grade? But this is a comprehensive program that emphasizes the student's needs and preferences," said Pashinyan.
"We need to pay attention to how the time is spent in schools and what skills are being taught in school hours. It will reflect in our society 15-20 years later. It will define whether we have a technological product or not.
What we were doing in 12 years (school length) can be done within 9 years, but a 9-year school isn't the solution. Instead of shortening the school, we're trying to fill the gap in a way to have a 50% higher efficiency by the end of the 12th year.
In developed countries, education starts not from school but from preschool. The lower the education entry age the more developed the countries are," said Pashinyan. (the govt has a plan to make sure 70% of kids attend preschools by 2023)
https://armenpress.am/arm/news/1042394.html

cancer stats in Armenia / annual rate / drops among children / fewer abandon treatment

world
9.6 million people die from cancer annually. 1/3rd is possible to prevent. Another part can be cured with the help of early detection.
Armenia
Cancer was the 2nd leading cause of death in 2020. It has increased in the past 10 years but at a small rate. Lung cancer is more common among men, and breast cancer among women.
First time diagnosis by year: 2018 - 8762, 2019 - 7908, 2020 - 7050.
Deaths by year: 2018 - 5199, 2019 - 5434. 2020 - unavailable. (55% men, 45% women)
The cancer rate went up by 1.5x compared to 1990. However, it declined by 2x among children under 14yo.
Fewer people abandon treatment. 3 years ago 53% of lung patients did so, today it's 40%. Breast cancer treatment abandonment went from 47% to 22%. (I translated the word բարձիթողության as "abandonment". Correct me if it refers to something else.)
Artsakh
The number of cancer cases has decreased in Artsakh: from 345 to 260 YoY.
prevention
Oncologist Safaryan says the early detection helps to avoid complications and save lives, even if it's the type of cancer that is known to reappear. There are many patients who defeat cancer. "Smokers should get a lung x-ray twice a year. Those working in chemical plants should get a frequent screening. Do not ignore symptoms and չգցել ականջի հետև. You can defeat it more easily when it's at 1-2 stages. It's a lot harder when it advances to 4."
Preventing cancer isn't easy. The causes of this disease are many. Genetics, bad habits, obesity, surrounding environment. A genetic test can reveal the likelihood of suffering from illness. Some women choose to undergo a mastectomy to prevent possible breast cancer in the future.
"I decided that if 1-in-100 is destined to be cured, I will be that one," said Ashkhen, a woman who recently defeated cancer.
More: https://armenpress.am/arm/news/1042291.html , https://armenpress.am/arm/news/1042364.html , https://armenpress.am/arm/news/1042405.html

cancer diagnosis, surgery, and radiotherapy are free

The treatment was made free recently. The Oncology Center urges the public to get screened as part of an early-detection initiative. The pilot program began in Vanadzor; 307 women were screened.
Cancer diagnosis, surgery, and radiotherapy are free, while the medication has a co-payment.
https://armenpress.am/arm/news/1042423.html

today in history

2004: Mike Zuckerberg founded Facebook to steal your SSN
1949: Sri Lanka declares indpendence
https://armenpress.am/arm/news/1042309.html

president meets donor

Artsakh president Arayik met donor Alec Baghdasaryan and thanked him. "Only with the joint efforts of the Armenian people is it possible to quickly overcome the difficulties and to plan development programs." Alec plans more charity programs relating to education.
https://armenpress.am/arm/news/1042326.html

donations to Artsakh & recovering soldiers

www.1000plus.am (recovering soldiers & their families)
www.HimnaDram.org (for Artsakh & Armenia)
www.ArmeniaFund.org (U.S. tax-deductible)

archive of older news

http://www.armeniapedia.org/wiki/Daily_Anti-Corruption_Reports

disclaimer

All the accused are considered innocent unless proven guilty in the court of law, even if they "sound" or "appear" guilty.