Morgan Ellison

Market Corruption 🔎 Activist Investing

[Morgan Ellison @Curious_Morgan_]

“This plumbing doesn’t just tolerate abuse but powers it at scale: by treating borrowed-from-DTC credits as legitimate and netting away gross imbalances, NSCC and DTC provide a standing reservoir of synthetic supply—ten to twenty times larger than the publicly visible fails…”

[InvestorTurf @InvestorTurf]

Today , InvestorTurf officially accuses the DTCC, DTC, and NSCC of orchestrating the biggest fraud in stock market history, and we demand action from the Trump administration.

InvestorTurf accuses the market-plumbing complex—DTCC and its two key arms, DTC and NSCC—of enabling the large-scale manufacture and concealment of “counterfeit” shares created through naked short selling. The DTCC is the broker-dealer-owned holding company, with DTC acting as the depository that holds almost all certificates in its nominee name and keeps member and customer sub-accounts as electronic entries, while NSCC is the central clearer that guarantees settlement and runs the stock-borrow program and Continuous Net Settlement (CNS). This structure lets trades “settle” even when the seller never delivers a real, borrowed share, so the buyer is credited with what call counterfeit share, yet the system treats it as if it were genuine.

NSCC’s stock-borrow and CNS netting process allows the same pool of real shares to be booked across multiple customer accounts at different brokers, inflating the effective float. NSCC guarantees trades and cures fails-to-deliver by borrowing from brokers’ net surpluses at DTC; because only net differences move, the lending broker doesn’t remove specific shares from any named customer, but the borrowing broker credits specific customers—so identical shares appear in more than one account. As long as members keep settling only their net obligations, the system never reconciles to the issuer’s true share count. This “CNS” layer hides “billions” of such counterfeit shares from Regulation SHO, with issuer-level CNS totals available only if DTC is successfully subpoenaed—and even the SEC does not routinely receive those tallies.

DTC is burying historic fails and providing mechanisms that let positions evade buy-ins and clocks. There is a case where roughly 400 million naked shorted shares that “should” have been bought in after a major player’s collapse were instead absorbed into DTC’s system and effectively “grandfathered” into legitimacy, permanently diluting issuers while no longer appearing as fails. The DTC runs or condones programs (described as RECATS) that alert members when positions are about to become fails so they can be shipped offshore or matched elsewhere and then returned with clocks reset—repeating as needed to keep positions naked and out of sight. When public and political pressure forced closure of the formal “grandfather” loophole in 2007, DTC and brokers simply migrated large blocks out of DTC to ex-clearing, where the same economic exposure persists but falls outside what regulators track.

Finally, this plumbing doesn’t just tolerate abuse but powers it at scale: by treating borrowed-from-DTC credits as legitimate and netting away gross imbalances, NSCC and DTC provide a standing reservoir of synthetic supply—ten to twenty times larger than the publicly visible fails in targeted names—that can be drawn on to overwhelm buy pressure, depress prices, and even push companies toward distress, all while appearing settled and compliant on the surface. This reserve of “strategic fails” gets created and maintained alongside profitable stock-lending and one-day “borrows,” and “friends” at the DTC and major clearinghouses” are part of a repeatable playbook used during coordinated short campaigns.

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades What are your thoughts here @hassytrades 🙏🏼

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades Can you update a prediction here 🙏🏼

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades Took onds prediction with $12 6/26 calls 🙏🏼

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades $open close

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades $CPSH !!!!!

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades $eose prediction 🙏🏼

[Morgan Ellison @Curious_Morgan_]

@rnewton7777 @grok when will the hypothetical ball that’s being pushed underwater be let go? When will $GME price run based on this theory? Is this the Babe Ruth phase about to begin 🤷‍♂️ Thank you @rnewton7777

[Morgan Ellison @Curious_Morgan_]

@TheUltimator5 https://t.co/3IcBSUZFlr

[Will Meade @thechartdr]

A buyer of 10,000 $XRT Retailers ETF 6/18/2026 $85 calls just hit the tape for 68 cents

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades $FCEL prediction/setup

[Morgan Ellison @Curious_Morgan_]

@sunxliao Any update here on $mstr @sunxliao 🙏🏼

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades Thank you again! Close to breaking out of the wedge. Would be grateful for your feedback in the morning 🙏🏼

[Userofintellect @userofintellect]

I said so!

$GME was a set up... it was Ryan Cohen’s perfect trap.

Fake $55B eBay bid (impossible to accept) forces merger-arb funds to short → RK returns + 13% spike → dilution filing lures fresh shorts → eBay rejects the offer.

Three separate short cohorts now trapped at once.

All must buy.

This is the most dangerous setup for GameStop since Jan 2021. 🚀​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ #GME

[Userofintellect @userofintellect]

@burrytracker He is not buying eBay. He is raising money with his moves. I don't think anyone can outsmart RC. He is an active trader who knows the game, and I like it.

[Ryan Cohen @ryancohen]

🎯

[Paul Branham @BoilerPaulie]

Allow me to translate this letter from eBay for those who don’t speak legalese:

Ryan,

We got your unsolicited offer to buy eBay for $125/share (half cash, half stock) supported by your 5% economic interest in eBay.

Our board, backed by the usual crew of bankers and lawyers who get paid either way, “thoroughly reviewed” it.

We’re rejecting it. Not because the math doesn’t work. Not because the highly confident letter from TD Securities for up to $20B on top of your $9B+ cash pile is fake. None of that.

We’re rejecting it because your entire approach to running a company is an existential threat to how we like to operate here.

Here are the reasons we feel this way, and the things we considered before paying consultants to write this:

1) We’d rather keep milking eBay as a “standalone” cash cow than let you turn it into something bigger and better.

2) Sure, you’ve got real financing lined up and you “know people” with deep pockets, but we’re going to call it “uncertain” anyway so we don’t have to engage.

3) Your plan would actually force real long-term growth and profitability changes we’d rather not be held accountable for.

4) The debt we pretended you can’t even obtain, the operational integration and focus on seller satisfaction, and most importantly, putting someone like you in charge of the combined entity all sound like a nightmare for our current leadership structure because all of us would have zero job security.

5) The valuation math only looks bad if you ignore the 46% premium you’re offering our shareholders and the upside from fixing eBay the way you fixed GameStop, which we are choosing to do and hoping nobody notices.

6) And I hope we buried the lede far enough here: Your governance and executive incentives are completely incompatible with ours. You and your board take zero cash, no salary, no bonuses, no golden parachutes. You buy shares with your own money and only get paid if shareholders win. We, on the other hand, like our nice, reliable annual payouts regardless of whether the stock is flat or the company is just coasting. We’re not about to hand over our golden goose to a guy who eats only what he kills.

Look, eBay is “strong” and “resilient” in the way every entrenched public company says it is while handing out eight-figure checks and perks to the C-suite. We’ve done the usual incremental stuff: tweaked the marketplace a bit, returned some capital, and we’d like to keep doing that without any cowboy from GameStop coming in and demanding actual skin-in-the-game accountability. Can you just leave us alone?

Our team remains focused on protecting the current regime and delivering “value”… mostly to ourselves and our consultants.

Thanks, but no thanks,

Paul S. Pressler
Chairman of the Board, eBay
(And proud beneficiary of the status quo)

[jake2b @jake2b]

imagine the surprise after $EBAY formally declines the purchase offer, $GME counters with an “all-cash, no stock” deal. with the backing of a financier/investment group it would be quite an ace up the sleeve, nullifying the board’s reasons for declining and thereby cornering them into acceptance under fiduciary duty.

the coy responses about the how they can pull it off would sure start to make a lot of sense. now, imagine if plan b was plan a. the best ones are always many steps ahead.

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades Almost time for another OPEN prediction?!?!

[Morgan Ellison @Curious_Morgan_]

@TigerLineTrades @hassytrades Thoughts on DJT? Thank you 🙏🏼