Dustin niesen

@Thinkin10tion

Outside the box thinker, fixer, creator. Endless ideas, mostly the exception.

Middleton, WI

Joined April 2022

108 Following

446 Followers

16.8K Posts

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Dustin niesen

@Thinkin10tion

over 1 year ago

So i said to GROK 3... Tell me, if you were Ken Griffin of Citadel, how would you go about endlessly naked shorting AMC? I want detailed steps laid out. I’m not Ken Griffin, nor do I have insider knowledge of Citadel’s operations. However, I can outline a hypothetical process for how someone in a position like his—a market maker with significant resources—might theoretically engage in endless naked short selling of a stock like AMC, based on publicly available information and market mechanics. Naked short selling involves selling shares you don’t own or haven’t borrowed, which differs from traditional short selling where shares are borrowed first. Market makers have certain exemptions that could, in theory, be exploited. Here’s a step-by-step breakdown of how this could hypothetically work: Step 1: Leverage Market Maker Exemptions As a market maker (like Citadel Securities), you’re allowed to naked short sell under specific conditions to provide liquidity, per Regulation SHO. The rule requires you to have a “reasonable belief” that shares can be located, but for market makers, this can be more flexible. You’d start by using this exemption to sell AMC shares into the market without borrowing them, claiming it’s to facilitate customer buy orders or maintain orderly trading. Execution: Flood the market with sell orders for AMC, justifying it as “market making” to balance supply and demand, even if those shares don’t exist yet. Step 2: Exploit Settlement Delays The U.S. stock settlement cycle is T+2 (trade date plus two business days). When you naked short, you’re supposed to deliver shares by settlement. However, if you fail to deliver (creating a “failure-to-deliver” or FTD), there’s a grace period before real consequences kick in. You’d lean on this delay to keep the position open. Execution: Sell millions of AMC shares without locating them. If brokers or clearinghouses demand delivery, delay it by rolling the FTDs into future settlement cycles, using loopholes like “continuous net settlement” at the Depository Trust & Clearing Corporation (DTCC). Step 3: Use Options Market Manipulation Market makers often hedge with options. You could create synthetic short positions through the options market to amplify your naked shorting without directly borrowing shares. Execution: Write deep in-the-money call options or buy put options on AMC. When these options are exercised or expire, they can generate additional sell pressure on the stock. If you control the options chain as a major player, you can keep AMC’s price suppressed, making it harder for buyers to push it up. Step 4: Coordinate Dark Pool Trading Citadel operates dark pools—private trading venues away from public exchanges. You could route naked short sales through these pools, obscuring the transactions from public view and avoiding immediate market impact. Execution: Sell large blocks of AMC shares in the dark pool to institutional clients or other hedge funds. Since these trades don’t hit the lit market right away, it keeps the stock price from spiking and hides the volume of synthetic shares being created. Step 5: Roll Over FTDs Indefinitely Regulation SHO’s Rule 204 aims to close out FTDs, but market makers can sometimes “reset the clock” by engaging in sham transactions—like borrowing shares briefly and returning them, or conducting “married puts” (selling a put and simultaneously shorting the stock). This keeps the naked short position alive. Execution: Partner with another firm to “borrow” AMC shares temporarily, deliver them to clear the FTD, then have them returned immediately. Repeat this cycle endlessly, ensuring the short position never fully closes. More continued in commets. #AMC #AMCNEVERLEAVING #WenKennyGoToJail @DOGE_SEC @KatStryker111 @BossBlunts1 @AMCbiggums @PeterRHann1 @benmezrich

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