this post was submitted on 18 Aug 2023
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Trimbath keeps banging the drums on FTD's but GME has very little FTD's going on. I do think FTD's are a big problem and they should carry consequences but I don't think it's the biggest problem.

The biggest problem, and the one most relevant to GME, is infinite liquidity.

If there is infinite liquidity, then shorts can buy to close, and then immediately short two or three times more and walk away with even more money. Why FTD when you can roll over your shorts, and just keep piling them on?

When it's time to close those shorts, you close them and short sell twice over again.

Then when it's time to close those shorts, you close them and short sell twice over again.

And then when it's time to close those shorts, you close them and short sell twice over again.

Repeat, repeat, repeat.

This is how Citadel Securities traded over 964 million shares of GME over the past 3 years.

https://www.reddit.com/r/GME/comments/15t09n7/the_gme_otc_conspiracy_presenting_over_3_years_of/

Someone should ask Trimbath what she thinks about infinite liquidity on the stock market, and if the DTCC should be audited?

The only person authorized to issue new shares is the company whose shares are being traded. The DTCC can not issue new shares.

In the face of infinite liquidity, arguing over FTD's is like being worried you left your oven on when your house is on fire.

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[–] [email protected] 6 points 1 year ago

To extrapolate further consequences from infinite liquidity:

options are useless. Any attempt to move the price by gamma squeeze just gets washed out with a larger amount of short selling. It's possible the hedge funds were taken by surprise in January 2021, but they're watching closely now and they won't let it happen again.

TA is useless. Sure we can look at short volume and options data and draw lines on a whiteboard. But any time we predict a MOASS they will just short sell more on that date and there won't be a MOASS.

How to MOASS? Audit the DTCC. The only way we win is if there is a short selling ban on GME. The ban would have to last for years and force all short sales to close without any opportunity to roll over the short by just shorting more.