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

The FTD data suggest they are in fact closing their shorts. There is very little FTD happening in GME's FTD data.

They are able to close thier shorts if infinite liquidity allows them to open two new shorts perpetually. Every time they close, they just open two more. This way they keep getting more money and more time.

https://fintel.io/sftd/us/gme

50,000 or maybe 100,000 on a bad day. That seems like a lot to a retail investor, but that's nothing when the float is officially 265 million. It's actually very low as a percentage of the float.

For the record - because of infinite liquidity there is actually much more than 265 million shares of GME in circulation. That means this level of FTD is piddly small. Absolutely tiny.

But we know that the short sellers have huge short positions based on the short volume being over 50% every day for years on end.

How can the short volume be so high, and the FTD's be so low, for years? This is possible because they are closing their shrots but they are able to short sell an infinite amount of shares.

Apes have limited buying power. Hege funds have unlimited short selling power.

[–] [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.

[–] [email protected] 5 points 1 year ago

I'd like to see more discussion about this.

[–] [email protected] 5 points 1 year ago

All these people saying "that's just FTD's" or "you're just describing FTD's" no I'm not. You're not understanding the consequences of infinite liquidity.

Let me ask you this. How can short volume be over 50% for years on end?

How can GME's FTD data show so few FTD's, for years on end?

Both of the above are true. But that's only possible when there is a lot more short selling than shares being purchased at market by investors.

Meaning apes have limited buying power, but hedge funds have unlimited short selling power.

[–] [email protected] 4 points 1 year ago (1 children)

This is why our stock keeps crabbing downhill.

It rises a little, and then gradually fades away.

That is short sellers buying to close and then short selling x2

Infinite liquidity causes stock dilution, which is theft.

Audit the DTCC.

[–] [email protected] 4 points 1 year ago

Infinite liquidity is just a fancy term for counterfeiting

[–] [email protected] 2 points 1 year ago

Don't know why I'm being downvoted here. Please check out the reddit thread too.

https://www.reddit.com/r/GME/comments/15u5vd3/what_if_ftds_arent_the_real_issue/

[–] [email protected] 2 points 1 year ago

I used to think FTDs were the issue and now technically I don't think FTDs are the issue (hint colloquially FTDS are the problem). I believe the key to all of this stems from nuances and the real issue is there can be more entitlements than total shares issued by the company.

[–] [email protected] 2 points 1 year ago

The way I understand is that FTD are a symptom of infinite liquidity for what they are unable to close out. When there is huge action and more buys are going on this is when they lose control and we see more FTD.

In the congressional hearing they even mention that infinite liquidity is just part of the system as they try to allow everyone to buy.

They have had years to learn how to hide their crime. It’s a mix of PFOF, FTD, swaps and probably much more that we have yet to uncover that allows them to hide it all from both us and the SEC. The issue is they have the tools and with both a hedge fund and a market maker branch are able to internalize everything in their system preventing outside eyes. Are there other metrics that we are missing? Is the Consolidated audit Trail (CAT) not enough and have loop holes we have not noticed. What about the netting system?

The only way we are able to find out and take away liquidity is to DRS. Eliminate the middleman and take back ownership

[–] [email protected] 2 points 1 year ago

The only way this can crash is if we can prove there aren't any more shares. When all shares are accountable outside the DTCC it's over, no matter what.