$VSME From all time highs to all time lows for this ticker. Wild trade, and yet another personal record. Forget about putting this on the fridge, this is being made in to wallpaper for my entire house! ๐
Today, a short-seller 'liquidation' scam:
Primega Group, $PGHL, is a Nasdaq-listed, Hong-Kong based entity that some some had likely shorted due to it being an obvious scam.
The stock spiked 108% today on no news and was halted all day after being unable to settle on an unhalt price. It then opened after hours +969% before collapsing again almost immediately.
So what happened?
Short sellers need only be outside of margin compliance for a fraction of a second for brokers to force automatic buy-ins. Knowing this, offshore scam operators tightly control the float of all these issuers but sometimes leave borrow available to lure in short sellers...
When short sellers bite, the scam operators wash trade a spike in the stock, then keep bid/asks moving during the halt so no unhalt price can be settled upon during regular trading hours. Then, after hours, it unhalts as they rip the price 10x+, causing brokers to force-liquidate accounts that were short. Brokers buy-in to cover the short sales as scam artists sell into the artificially high price.
This can lead to short accounts being wiped out instantly and can even lead to broker losses. The same liquidation scam playbook had been executed previously with other Nasdaq offshore scam tickers such as $ZJYL.
A cautionary tale for anyone wishing to short these obvious scams. And once again, more evidence that Nasdaq has transformed itself from a once respected stock exchange into a stock scam playground.
@tpatax_Kyiv Statistics show that if you can catch one of these IPOโs on a fade, they fade hard. I just didnโt know it was going to fade this hard.
$VSME From all time highs to all time lows for this ticker. Wild trade, and yet another personal record. Forget about putting this on the fridge, this is being made in to wallpaper for my entire house! ๐