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.
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.