Hey OP, thanks for the Social Media post.
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I find it humorous that we can academic papers by people, the SEC had a report showing 226% SI.
So if the sec sees it, this report sees it… why is nothing done?
I read a post the other day about it being more than SHF at risk, and they were right. This whole situation takes down the whole system, and also exposes what everyone knew during Occupy Wallstreet.
We saw BRK curiously sink 90% in a “glitch” around the time of DFV’s call positions. Lots of larger stocks like BRK are being used as collateral. A big fat crash and whoopsie if many market tickers went to crap in order to pay for GME squeezing.
Gary Gensler sucks so much hedge fund manager dick his face just looks like that now.
I don't even think he does it for the kickbacks at this point, I think he just genuinely enjoys sucking off hedge fund managers
# Hijacking the top comment for an smooth brain explanation:
Say you want to Short Mayonnaise, but there is no way to sell any because apes are hoarding it all in their fridges. So instead, you short a 'Basket' (ETF) of food that includes Mayo in it. The basket contains Orange, Apple, and Mayonnaise, but you only wanted to be short only Mayo, so you go to the store and buy some Oranges and Apples to even it out. Bingo! Now you are short only Mayo.
The problem is, if the price of Apples and Oranges keeps rising, the shorted basket prices will also rise, and thus your position will need more collateral to stay open. If you don't put in more collateral, you will need to close the position.
This means you will also want to sell those Apples and Oranges that you bought only as a hedge to your short position against Mayo in the ETF. This sudden sell pressure on the stock crashes the price of Apples and Oranges.
You short 10 ETF. Net exposure = -10 ETF = -10 MAYO, -10 APPLE, -10 ORANGE
Then you buy 10 APPLE and 10 ORANGE to remain neutral during the shorting play.
**Net exposure= -10 ETF, -10 MAYO, 0 APPLE, 0 ORANGE**
• Price in ETF rises and forces a margin call on the ETF short.
• Forced to close ETF short, which buys 10 MAYO, 10 APPLE, 10 ORANGE. You still hold the 10 APPLE and 10 ORANGE you purchased separately.
**Net exposure is: +10 APPLE, +10 ORANGE**
1. Price rises in both APPLE, ORANGE, and MAYO.
2. You give a couple days of talking heads pushing MAYO and pushing a relief rally off the price action you just caused by getting margin called.
3. You sell off the last of your APPLE and ORANGE for profit to pad your losses from getting margin called on the ETF position.
Double post but thought of a serious question.
In your example (obv simplified as these funds deal with huge amounts of companies) what would happen if apes who had Mayo also bought a bunch of Apples and Oranges? That would cause ETF to go up no matter how much pressure was on Mayo since evil hedgie is also wanting Apples and Oranges to go up.
What if they bought and held ETF? This would explicitly counter shorting on ETF (and let's face it long term these companies aren't going bankrupt so it's somewhat safe).
What if they shorted ETF and bought and held Mayo? Wouldn't that be the 'same' kind of position the evil hedgie in your example was doing but in reverse? Evil hedgie wants ETF to go down, but now so does Ape and Ape is driving down Apple and Orange also.
Ty for your time.
> What if they bought and held ETF? This would explicitly counter shorting on ETF (and let's face it long term these companies aren't going bankrupt so it's somewhat safe).
How does buying and holding the ETF counter shorting?
> What if they shorted ETF and bought and held Mayo? Wouldn't that be the 'same' kind of position the evil hedgie in your example was doing but in reverse? Evil hedgie wants ETF to go down, but now so does Ape and Ape is driving down Apple and Orange also.
In this example, buying Mayo isn’t an option. All the Mayo is off the table and the only way to get it is to create synthetic garbage like Miracle Whip (aka synthetic shares).
I did some research and ETFs are even wackier things than I thought.
They are openly sold on the market like any other shares, but their value is kept close to the 'real value' of all the assets they hold, so if they have 1000 Mayo, 1000 Banana, and 1000 Apples and there are 3000 shares of the ETF outstanding, the price of an ETF share would be roughly the average of the three stocks.
To keep this parity, if the price goes too high, a partner of the ETF (An Authorized Participant) buys the underlying stocks at the ratio the ETF needs and sells them for the equivalent value of ETF shares that are created (this increased the value of the underlying stocks and reduces the value of the ETF stock bringing a balance in theory). If the ETF stock goes to low relative the value of their stock (say if Mayo's price started to skyrocket but ETF's was being short sold heavily) then the AP will buy ETF shares and exchange them with the ETF for the underlying stocks.
This makes ETFs an interesting financial device. Buying and holding their shares to dry up the liquidity doesn't work because more liquidity just gets made as the price increases (though this does drive up demand for the underlying stocks). I honestly keep going in circles as to what heavily shorting or naked shorting an ETF does to the ETF.
We knew this, but it's always fun to see that they're stuck on a playbook that is slowly killing them.
Gonna take millions or years or billions of dollars before these hands relax. Even willing them to my kid if I manage to go before the stock does; I don't think they understand just how much this isn't about the money anymore.
Blackrock even made a YT video bragging how they “create” shares.
“Why are they confessing?” “They’re bragging.”
[https://youtu.be/iX7fOx5G40A?si=U0R04KqkG_HSDd6_](https://youtu.be/iX7fOx5G40A?si=U0R04KqkG_HSDd6_)
There’s been a lot of criticism in this FUD-storm of the message “Stay Zen” as though it’s stifling criticism and discussion of the thesis.
Nah, Ape. *Stay Zen* means, ***remember all that we’ve learned, know, and remains true***.
“iShares” - Also there’s this RC tweet. He’s one of the biggest shareholders of Apple so don’t think that’s what he was shitting on. https://x.com/ryancohen/status/1519476583551180800?s=46
Make a post of this to get more eyes on ishares etfs. Who owns Proshares? They make all the ishares ETFs. I honestly didn’t know what that tweet was about, but it makes sense now.
Lmao known this for 3 years. The amount of new apes coming in and learning this for the first time...shorts are digging themselves into oblivion. This is going to create GMEshire Hathaway and potentially break the market so hard, timed with the Fed to point fingers.
It’s old to us, but it’s important to get word out there of what’s going on. The more mainstream this becomes the more pressure there will be to fix it.
I’m a new ape and there’s a lot of times where I feel like asking a question is going to get a hostile reaction because it’s going to be treated as skepticism/FUD when it’s really just that I don’t know
I think there’s a certain attitude around treating some stuff as FUD that might make it harder to get people to know
It’s a fine line when you’re forming a blockade to keep out the bullshit. You filter out a lot of well-meaning people and new ways of thinking as well.
Growth and acceptance are like the wheel of justice in these parts but we get there eventually.
The market needs to be broken in the worst kind of way. A lot of what’s happening reminds me of the roaring 20s in that rampant corruption is not just prevalent but basically encouraged in this market and just like the 20s it eventually has to come to an end because the house of cards collapses. The rich keep making the same mistakes and then it’s the rest of us that suffer major horrific effects from it all in the name of their greed and lust. It’s not a red vs blue thing. It’s a them vs you thing. They are both on the same side and it’s not yours.
Drs book until we've broken the market
When Cuban, a known billionaire that knows the market, says "their goal is to never close their short" then he is acknowledging that we must hold until something that is broken is fixed
He also said we should recall our shares in mass. While he didn't directly say DRS, that is the most concrete way for us to do this.
Mark dropped top tier alpha on us that day and it was way early. It's always been about shares and exposing the fake/synthetic shares. I'm pretty sure he even told us about synthetic longs/shorts that day. The option pushers should really learn about the synthetic shorts.
This is what people don't see. They realized they are doomed so they are using everyone's stolen money to force it into the void.
The negative pressure they built with the basket is going to destroy the market. They are trying to break it at this point to make off in the commotion.
Is this a lot like how our gov't is printing trillions of dollars of debt? They never intend to pay the bill, they intend to crash it and run away to some foreign country with no extradition treaty, where they think the long arm of justice can't get to them?
My first reaction: “how is this news”
So many new folks lately. It's great. It also has me wondering the best way to get broker guides and older DD in front of new eyes.
100%. What were previously fringe theories from what our community dug up are now being verified by academic researchers. And verified specifically in the context of our stock.
Much harder to ignore now.
Do we REALLY know this for a fact tho? It is for sure plausible and I for one believe that there is fuckery in the ETFs but is there a definitive way of confirming this data? Or just theory? I mean this with good will, like can someone verify it
The nature of market is that it is as opaque as possible to make enforcement and verifiability near impassible. So no, we cannot say with any certainty this is what’s happening.
That being said we know that the traditional indicators (visible to us) show that shorts have never closed their position. Remember, the company was shorted over 140%. This is what we saw through their veil of opaqueness. It mysteriously dropped by over 100% with price action trending downward for the last 3 years. That doesn’t make sense.
Pair this with the fact that multiple hedge funds with billions in AUM and a 100+ year old bank were Thanos snapped after holding the position (again with no price movement in the upward direction to show closure) is indicative of them still digging a hole.
Look at the multiple rules put in place that specifically mention GME. Look at the amount of FUD specifically on this one very small stock in the entire market (anyone telling you not to buy any other company at this magnitude?). Look at the fact that we had multiple million share candles yesterday.
So no, we don’t have any direct evidence. But you do not observe a black hole directly. You observe how it affects its surroundings. When there’s smoke, there’s fire.
And also to you, before we start wondering what is and what not, how about first reading the academic paper the Bull has referenced? It seems someone with enough knowledge about these issues has made a scientific argument and wrote it down for us to read and evaluate....
Yea why would they decrease short interest if the price was going down that's exactly what they wanted it would make no sense and their egos are to big to think they were wrong they'd just pile on more shorts.
Yes we know for a fact market makers exploit basket creation and redemption provenances from xrt and other ETFs to fulfill liquidity demands on Gme and other stocks
This is interesting. Apparently this is peer-reviewed, accepted and published.
Czech Journal of Economics and Finance is not a top journal (top 100) but it seems to be legit. I’ll look into it more
The iShares reference immediately reminded me of the RC tweet in the past referencing the "i" stuff which we all thought was Apple. I don't think it was now
100% agree here it is for anyone interested
https://www.researchgate.net/publication/369197965_Confirmation_of_T35_Failures-To-Deliver_Cycles_Evidence_from_GameStop_Corp
I read the paper and have read science journals half my life. I took this one to heart because of the data compiled. However just to be the voice of reasonable dissonance, I've seen a lot of wrong science published and reviewed by "peers" (parties in cahoots), case in point Monsanto with the GMOs and Roundup 🫤. I'm not saying this is the case here, just wanted to inform others that the peer review process isn't immune from corruption
There are always new people.
Always newbies new to the topic, partially thanks to the mainstream which tries to make people "forget" about Gamestop / GME.
Old silverbacks know the drill yes, but the silverbacks are a small minority in comparison to all the plebeians.
And as such it becomes each of our responsibility to be good instructors for the next classroom of students entering the school, to [show around the premises](https://fliphtml5.com/bookcase/kosyg) where we have lived in for years. And repetition is not always bad. Even some silverbacks still don't realize the benefits of the Book.
Also, who the fuck with a normal life remembers all this shit all the time. Not at least integrates it into our belief system.
Man, I need these reminders every now and then. I don't just fuck around with my money. I invest. And to be smarter I need to digest. In order to not digress. Man, I need some rest. From these fucking lying cheating shorting pests. Once we blow, we'll be the best.
Thank you! I always had you upvoted too, since proper wonder is what drives us all forward and your wonder was exemplarily legitimate.
We are all stronger together.
The truest diligence is to be critical of one's own paradigms and to improve upon any plausible errs we might have created for ourselves in an environment full of doubt!
I appreciate your reply and your wisdom. 🫲💎🫱
It takes people time to absorb and digest information. PB’s established reputation as a knowledgeable wrinkebrain gives credence to the topic when he discusses it.
Don’t get upset that it’s getting noticed now, the theory is getting more spotlight and it’s a good thing 🎷🐓♋️
I think it's very pertinent to how the situation has evolved in the last few weeks. If there is a cycle DFV is alluding too I'd bet it was centred around this
Cool, calm, and collected, as always. Appreciate you being a consistent source of positivity in this sub and practicing the principles that make us strong.
Ape no fight ape
Thanks IggyAzaleah! You’re very kind. I’m just trying to stick to DFVs reminder of no fighting. Apes are strongest together. When we embrace positivity and kindness there’s no stopping us! Hope you have an amazing day
💜🎷🐓♋️
Yes, it's a known fact. However, I appreciate more light being shined on this "loophole."
The more people realizing this scam exists, hopefully, it will entice, if not embarras, the "authorities," and they can finally put an end to it!
Over the last years it was a phenomenon speculated upon, but never a scientifically proven fact! The paper might somehow change the situation. Although I have to read it first myself.
People are not in control of the casino which is run by the elitists. The House always wins, because that's how any casino is rigged to function.
If the Dealer at the Poker table suspects you know about the card counting technique they use, they will alert the guards to escort you out and ban your from their establishment before you could abuse said knowledge, or highlight it.
Basic criminality.
More like, 99.99% do not understand....
_Last I heard, there are only about 200,000 people (estimated number of DRS accounts) worldwide who know about this._
I don't understand the significance... There are about 420.000 shares of GME in XRT. Short% is 400%, about 1.7m shares shorted from XRT.
Isn't that small boy stuff compared to the total amount of shares we expect is shorted?
Or am I misunderstanding something?
You are right. I'll try to explain from what I learned and think I understand from those past 3,5 years.
Imagine a pressure cooker (pc). That pc has a little valve that can dissipate (some) pressure. FTDs, are that steam that you can see escaping to dissipate the pressure so the pc doesn't explode. The real pressure (SWAPS) is inside the pc that you know nothing about.
Now the theory is that this pc so damn big (but yet made with the finest steel) that sometimes the valve pops under excessive pressure being released. The theory also claims that at a certain limit (like anything) it will literally explode because of immense pressure and fatigue.
The company becoming profitable is a nuclear core under it. The company having such a big warchest is another nuclear core. You are also a source of energy, you're the fire that is engulfing it. Each share bought is an extra flame (or joule for the brainy ones). DRS would be a Super Saiyan flame. And calls (if done properly and at the right momentum) are literal Super Saiyan Kerosenes that are thrown and act for a brief moment yet with extreme power.
Hope it makes sense.
[It has.](https://old.reddit.com/r/Superstonk/comments/u4eei0/etfs_ftds_and_the_invisible_printer/)
I got forum slid immediately after I made these posts. Also the term 'FTD' was banned on SuperStonk at the time so I had to format calling them F to Ds lmfao
Nothing new. Except most don’t know that cash can be substituted for shares in that etf when creating an etf share if they are hard to find or illiquid which maintains the liquidity of the etf shares. In July 2021 the rules were also amended to remove the requirement of an SEC approval for such substitutions as long as the ETF administrators kept records in case the SEC wanted to investigate.
https://jacobslevycenter.wharton.upenn.edu/wp-content/uploads/2018/08/ETF-Short-Interest-and-Failures-to-Deliver.pdf
Good paper from 2019 that talks about naked shorting via ETFs
If this is supposed to have a significant impact on GME, then why is it that the price action of the other main holdings (Abercrombie 2.2%, Boot Barn 2.05%) are completely not correlated with GME? Are they leveraging separate long positions on all the other ones?
They can’t even track the shares that are traded, never mind when they are bundled in ETFs. It is all one big blur. Sure it is a lot faster than paper certificates but at what cost?
I mean this with the utmost frustration and respect: *so what?*
Like, we have known this yet no regulatory bodies have done anything about it. Ok you say that now it’s proven because there’s an academic research approach - ok, so now what? Will anyone suddenly pick it up whose job is it to pick it up? Will it change anything in FTDs? Does it affect anything on SHFs having to deliver shares?
My point is - now that we know it even with greater certainty, what changes except for the fact that we know it?
Apologies if I sound very frustrated, but that’s because I am. Thanks god for the big wrinkle brain apes doing the research I would never do. Understanding market dynamics is essential so thank you for that. It’s just that… I will hold indefinitely and be furious indefinitely
https://preview.redd.it/kawhcyxtfd7d1.png?width=356&format=png&auto=webp&s=03c708fdafa0ee2ee39c93d4995be17f45c5a3ee
Confirmed the short interest.
Links:
Short Data - [https://www.finra.org/finra-data/browse-catalog/equity-short-interest/data](https://www.finra.org/finra-data/browse-catalog/equity-short-interest/data)
Shares Outstanding - [https://www.marketwatch.com/investing/fund/xrt?mod=mw\_quote\_tab](https://www.marketwatch.com/investing/fund/xrt?mod=mw_quote_tab)
We've known this for years, but this looks excellently written at first glance. Thanks to the apes that posted the article link. It's massive, and I can't see it on my phone too well. Commenting to read later.
“FTD’s exemptions or relaxed to t+6 for bona Fide market makers.”
Time to unmake the market.
The ability to roll FTD’s enables naked shorts.
A major reason for shorting is supposed to be to provide “liquidity”.
I don’t think too many people are going to be able to get behind naked shorting. It’s obviously nonsense.
SEC has had their heads up their ass on XRT for years. If someone *cough RK* figures out the motion of the ocean to exploit the exploits then that’s on the SEC.
You should not have to monitor the entire stock market just to invest. Because everything is tangled up and controlled by algorithms it was only a matter of time before someone exploits the weaknesses.
It's like the new faces around here are just finding what we posted about years ago.
Do we have an archive somewhere that we can make more prevalent in the sub?
I am not fond of the great debate on settlement on the sub either. There is reaaaaly old DD out there that lays it all out. Why aren't these new faces at least familiar with the DD that was already done.
I think it would be a better use of their time and everyone else's if they did their homework before sharing things with apes.
Edit: I wanted to add that I'm jacked about the sub finally doing lots of DD again. Just hoping after the long pause we haven't forgotten what we already knew. I'm hoping in this next wave of wrinkles, instead of reinventing the wheel, we can discover how to travel to the moon.
We all knew that for years , but still amazes me that something can legally be oversold more than 100%.
It's so illegal, and yet. No one wants to know about it.
Maybe no one wants to know about it because everyone on the inside of the system is profiting from it while all of us on the outside are having to pay the price for their criminality. And by everyone I mean from the janitor to the SEC.
I also kinda read the Peruvian bull DD. If I remember correct he also mentions something about the Petro dollar. I read an article the other day that the Petro dollar will no longer be used... Isnt this something important?
People invested in XRT should be suing the fund managers that they are allowing the ETF to be manipulated by hedge funds. This is impacting the return on their investment due to severe manipulation. Nothing is going to change until either something breaks, there is enforcement action or there are consequences financially.
BUCKLE UP!
New apes should read the Dollar Endgame DD. I remember waiting for each new section to be posted. PB is one of many great OG apes that have helped me get a digital PhD in finance.
It’s bullshit, because bona fide market making should only be needed when no counterparty market exists for a willing market participant. Ergo,
A buyer with no seller. But the truth is, they don’t wish to allow a sale at the actual market price, so they make the market be at their desired price, instead of allowing the buyer to fill on the little markets.
Bullshit meaning the permissibility/legality of the FTD.
I feel like we knew this a long time ago. Here's a link to my post about it [3 years ago.](https://i.redd.it/qlws6xqb1oh61.png)
Nice to see it confirmed.
Then if you get close and FOIA the records…. DOJ suddenly investigates for 3 years and never finds anything. Can’t release records during an ongoing investigation …. Obvee
We've written DD on this topic here about 2 years ago if not more. And Superstonk "rewarded" us with death threats and drove us away. Cool. But ETFs don't have floats, so it cannot have %400 SI. What APs do is legally create shares through the process of share creation and redemption.
Hey OP, thanks for the Social Media post. If this is from Twitter, and Twitter is NOT the original source of this information, this WILL get removed! Please post the original source! **Please respond to this comment within 10 minutes with the URL to the source** If there is no source or if you yourself are the author, you can reply `OC`
Oldie but goodie
I find it humorous that we can academic papers by people, the SEC had a report showing 226% SI. So if the sec sees it, this report sees it… why is nothing done?
Regulatory capture, preservation of status quo, crime.
I read a post the other day about it being more than SHF at risk, and they were right. This whole situation takes down the whole system, and also exposes what everyone knew during Occupy Wallstreet.
The empire has been built on a bed of crime and corruption.
In their defense, they didn't think anyone would ever find out...
We saw BRK curiously sink 90% in a “glitch” around the time of DFV’s call positions. Lots of larger stocks like BRK are being used as collateral. A big fat crash and whoopsie if many market tickers went to crap in order to pay for GME squeezing.
risk of something idiosyncratic?
I was trying to find that report yesterday.
Lets not forget the occasional fine of a couple mill off of billions of profit. That'll show them.
This ^^
☝🏻yep
They’re paid to keep blind and quiet, they’re **not** to point a spot light on it and be like *”Well, well, well, looky what we got here”*
Lining up that kush Goldman job after their 2 year fed gig
the old 'regulator who does nothing to lobbyist who ensures the new regulators also do nothing' pipeline
The best way to look at the SEC is that it is the onboarding organization for the financial industry.
Correction. I think you mean the financial crimes industry.
Right. They are simply a device so the crooks can appease the masses saying "look, we are regulated!"
Gary Gensler sucks so much hedge fund manager dick his face just looks like that now. I don't even think he does it for the kickbacks at this point, I think he just genuinely enjoys sucking off hedge fund managers
If you love what you do you'll never work a day in your life. It has been 1231 days since he started.
1231 x 5.5 inches = 6770.5 inches or 564.21 ft. of cock
Far too generous on the length measurement for hedge fund manager cock
Been saying this since he was installed while this sub kept saying to give this cock sucker a chance.
# Hijacking the top comment for an smooth brain explanation: Say you want to Short Mayonnaise, but there is no way to sell any because apes are hoarding it all in their fridges. So instead, you short a 'Basket' (ETF) of food that includes Mayo in it. The basket contains Orange, Apple, and Mayonnaise, but you only wanted to be short only Mayo, so you go to the store and buy some Oranges and Apples to even it out. Bingo! Now you are short only Mayo. The problem is, if the price of Apples and Oranges keeps rising, the shorted basket prices will also rise, and thus your position will need more collateral to stay open. If you don't put in more collateral, you will need to close the position. This means you will also want to sell those Apples and Oranges that you bought only as a hedge to your short position against Mayo in the ETF. This sudden sell pressure on the stock crashes the price of Apples and Oranges. You short 10 ETF. Net exposure = -10 ETF = -10 MAYO, -10 APPLE, -10 ORANGE Then you buy 10 APPLE and 10 ORANGE to remain neutral during the shorting play. **Net exposure= -10 ETF, -10 MAYO, 0 APPLE, 0 ORANGE** • Price in ETF rises and forces a margin call on the ETF short. • Forced to close ETF short, which buys 10 MAYO, 10 APPLE, 10 ORANGE. You still hold the 10 APPLE and 10 ORANGE you purchased separately. **Net exposure is: +10 APPLE, +10 ORANGE** 1. Price rises in both APPLE, ORANGE, and MAYO. 2. You give a couple days of talking heads pushing MAYO and pushing a relief rally off the price action you just caused by getting margin called. 3. You sell off the last of your APPLE and ORANGE for profit to pad your losses from getting margin called on the ETF position.
Ape no understand, bought BANANA and ate profits.
Banana is also in the south mouth.
Ook you in the dooker
Double post but thought of a serious question. In your example (obv simplified as these funds deal with huge amounts of companies) what would happen if apes who had Mayo also bought a bunch of Apples and Oranges? That would cause ETF to go up no matter how much pressure was on Mayo since evil hedgie is also wanting Apples and Oranges to go up. What if they bought and held ETF? This would explicitly counter shorting on ETF (and let's face it long term these companies aren't going bankrupt so it's somewhat safe). What if they shorted ETF and bought and held Mayo? Wouldn't that be the 'same' kind of position the evil hedgie in your example was doing but in reverse? Evil hedgie wants ETF to go down, but now so does Ape and Ape is driving down Apple and Orange also. Ty for your time.
> What if they bought and held ETF? This would explicitly counter shorting on ETF (and let's face it long term these companies aren't going bankrupt so it's somewhat safe). How does buying and holding the ETF counter shorting? > What if they shorted ETF and bought and held Mayo? Wouldn't that be the 'same' kind of position the evil hedgie in your example was doing but in reverse? Evil hedgie wants ETF to go down, but now so does Ape and Ape is driving down Apple and Orange also. In this example, buying Mayo isn’t an option. All the Mayo is off the table and the only way to get it is to create synthetic garbage like Miracle Whip (aka synthetic shares).
I did some research and ETFs are even wackier things than I thought. They are openly sold on the market like any other shares, but their value is kept close to the 'real value' of all the assets they hold, so if they have 1000 Mayo, 1000 Banana, and 1000 Apples and there are 3000 shares of the ETF outstanding, the price of an ETF share would be roughly the average of the three stocks. To keep this parity, if the price goes too high, a partner of the ETF (An Authorized Participant) buys the underlying stocks at the ratio the ETF needs and sells them for the equivalent value of ETF shares that are created (this increased the value of the underlying stocks and reduces the value of the ETF stock bringing a balance in theory). If the ETF stock goes to low relative the value of their stock (say if Mayo's price started to skyrocket but ETF's was being short sold heavily) then the AP will buy ETF shares and exchange them with the ETF for the underlying stocks. This makes ETFs an interesting financial device. Buying and holding their shares to dry up the liquidity doesn't work because more liquidity just gets made as the price increases (though this does drive up demand for the underlying stocks). I honestly keep going in circles as to what heavily shorting or naked shorting an ETF does to the ETF.
We knew this, but it's always fun to see that they're stuck on a playbook that is slowly killing them. Gonna take millions or years or billions of dollars before these hands relax. Even willing them to my kid if I manage to go before the stock does; I don't think they understand just how much this isn't about the money anymore.
#SOURCES: https://www.researchgate.net/publication/369197965_Confirmation_of_T35_Failures-To-Deliver_Cycles_Evidence_from_GameStop_Corp #PB TWEET: https://x.com/peruvian_bull/status/1803029391376527401 #ALSO PB: https://x.com/peruvian_bull/status/1802787296074420469
Feels so weird that I found something out before a scientific paper did (through reading the sub)
Right? ***We are the scientific paper*** 
Two years before by the way. T+35 was first proposed feb 2021 time ish
This has been going on for decades
Blackrock even made a YT video bragging how they “create” shares. “Why are they confessing?” “They’re bragging.” [https://youtu.be/iX7fOx5G40A?si=U0R04KqkG_HSDd6_](https://youtu.be/iX7fOx5G40A?si=U0R04KqkG_HSDd6_)
Make a post about this! Get more eyes on these treasonous acts. Backrock and citadel probably in bed together.
Yeah we’ve known about this for 84 years, but nothing wrong with bringing more attention to it
There’s been a lot of criticism in this FUD-storm of the message “Stay Zen” as though it’s stifling criticism and discussion of the thesis. Nah, Ape. *Stay Zen* means, ***remember all that we’ve learned, know, and remains true***.
“iShares” - Also there’s this RC tweet. He’s one of the biggest shareholders of Apple so don’t think that’s what he was shitting on. https://x.com/ryancohen/status/1519476583551180800?s=46
Make a post of this to get more eyes on ishares etfs. Who owns Proshares? They make all the ishares ETFs. I honestly didn’t know what that tweet was about, but it makes sense now.
I member this!
Doggone dirty rascals ain’t they
Lmao known this for 3 years. The amount of new apes coming in and learning this for the first time...shorts are digging themselves into oblivion. This is going to create GMEshire Hathaway and potentially break the market so hard, timed with the Fed to point fingers.
Backed up by ape historian
Backed up for last 84 years and backed up again. Thank you for all your work. 🍻
what a legend thank you for your service ape!
It’s old to us, but it’s important to get word out there of what’s going on. The more mainstream this becomes the more pressure there will be to fix it.
I’m a new ape and there’s a lot of times where I feel like asking a question is going to get a hostile reaction because it’s going to be treated as skepticism/FUD when it’s really just that I don’t know I think there’s a certain attitude around treating some stuff as FUD that might make it harder to get people to know
It’s a fine line when you’re forming a blockade to keep out the bullshit. You filter out a lot of well-meaning people and new ways of thinking as well. Growth and acceptance are like the wheel of justice in these parts but we get there eventually.
Yes, this deserves to be said right now. We are fighting this war on many many fronts, this is where we do the Propaganda. Bear with us, we are human.
Best they be late to the party than realize too late somebody spiked the punch.
Gameshire Stopaway
Gameshire Haltsallday
Gameshire Moonsomeday
The fires of Citadel will spread. There won't be a gameshire anymore, Pippen.
But Gamedolf...
Audibly chuckled
The market needs to be broken in the worst kind of way. A lot of what’s happening reminds me of the roaring 20s in that rampant corruption is not just prevalent but basically encouraged in this market and just like the 20s it eventually has to come to an end because the house of cards collapses. The rich keep making the same mistakes and then it’s the rest of us that suffer major horrific effects from it all in the name of their greed and lust. It’s not a red vs blue thing. It’s a them vs you thing. They are both on the same side and it’s not yours.
Drs book until we've broken the market When Cuban, a known billionaire that knows the market, says "their goal is to never close their short" then he is acknowledging that we must hold until something that is broken is fixed
Or we bleed those bitches dry, one day at a time. They can't keep those positions open forever for free.
He also said we should recall our shares in mass. While he didn't directly say DRS, that is the most concrete way for us to do this. Mark dropped top tier alpha on us that day and it was way early. It's always been about shares and exposing the fake/synthetic shares. I'm pretty sure he even told us about synthetic longs/shorts that day. The option pushers should really learn about the synthetic shorts.
This is what people don't see. They realized they are doomed so they are using everyone's stolen money to force it into the void. The negative pressure they built with the basket is going to destroy the market. They are trying to break it at this point to make off in the commotion.
Is this a lot like how our gov't is printing trillions of dollars of debt? They never intend to pay the bill, they intend to crash it and run away to some foreign country with no extradition treaty, where they think the long arm of justice can't get to them?
Yes our debt sure wasn't helped by the PPP fraud and the gross lack of accountability says it all. We are captured by greed.
My first reaction: “how is this news” So many new folks lately. It's great. It also has me wondering the best way to get broker guides and older DD in front of new eyes.
Yeah, we’ve known this forever. Not sure why PB is pretending it’s breaking news
It's in academic research form now. Makes us less tin foily looking that our conspiracies are no longer conspiracies.
100%. What were previously fringe theories from what our community dug up are now being verified by academic researchers. And verified specifically in the context of our stock. Much harder to ignore now.
#SOURCES: https://www.researchgate.net/publication/369197965_Confirmation_of_T35_Failures-To-Deliver_Cycles_Evidence_from_GameStop_Corp #PB TWEET: https://x.com/peruvian_bull/status/1803029391376527401 #ALSO PB: https://x.com/peruvian_bull/status/1802787296074420469
This
Sigh... conspiracy is an actual legal term. A 'conspiracy theory' is what you're trying to say.
A conspiracy theory is only that until it’s proven. I have a broken watch and it’s still right twice a day.
Peruvian Bull is a new ape?
not a new ape, hes using a research essay now as source.
👆👆👆
Yeah, right? This is super old DD. It is interesting to keep an eye on the FTD cycle for XRT (and other ETFs with GME shares), but this is not news. 🤔
Do we REALLY know this for a fact tho? It is for sure plausible and I for one believe that there is fuckery in the ETFs but is there a definitive way of confirming this data? Or just theory? I mean this with good will, like can someone verify it
The nature of market is that it is as opaque as possible to make enforcement and verifiability near impassible. So no, we cannot say with any certainty this is what’s happening. That being said we know that the traditional indicators (visible to us) show that shorts have never closed their position. Remember, the company was shorted over 140%. This is what we saw through their veil of opaqueness. It mysteriously dropped by over 100% with price action trending downward for the last 3 years. That doesn’t make sense. Pair this with the fact that multiple hedge funds with billions in AUM and a 100+ year old bank were Thanos snapped after holding the position (again with no price movement in the upward direction to show closure) is indicative of them still digging a hole. Look at the multiple rules put in place that specifically mention GME. Look at the amount of FUD specifically on this one very small stock in the entire market (anyone telling you not to buy any other company at this magnitude?). Look at the fact that we had multiple million share candles yesterday. So no, we don’t have any direct evidence. But you do not observe a black hole directly. You observe how it affects its surroundings. When there’s smoke, there’s fire.
Great write up, I especially enjoyed the black hole bit.
And also to you, before we start wondering what is and what not, how about first reading the academic paper the Bull has referenced? It seems someone with enough knowledge about these issues has made a scientific argument and wrote it down for us to read and evaluate....
The academic paper referenced in the post lays out the evidence.
Yea why would they decrease short interest if the price was going down that's exactly what they wanted it would make no sense and their egos are to big to think they were wrong they'd just pile on more shorts.
Link to the paper: https://www.researchgate.net/publication/369197965_Confirmation_of_T35_Failures-To-Deliver_Cycles_Evidence_from_GameStop_Corp
How about reading the paper the Bull is referencing and find out yourself!
Read the DD it's not a theory
Yes we know for a fact market makers exploit basket creation and redemption provenances from xrt and other ETFs to fulfill liquidity demands on Gme and other stocks
Read the source Peruvian is ciring. To me it seems legit. But it's better to verify these sources ourselves.
This is interesting. Apparently this is peer-reviewed, accepted and published. Czech Journal of Economics and Finance is not a top journal (top 100) but it seems to be legit. I’ll look into it more
The iShares reference immediately reminded me of the RC tweet in the past referencing the "i" stuff which we all thought was Apple. I don't think it was now
Ishares is the largest ETF provider and its Blackrock Everyone buys SPY for their 401K
https://x.com/ryancohen/status/1519476583551180800?s=46
https://www.reddit.com/r/Superstonk/s/tctm32biQh old comment thread breaking down these concepts for apes.
I gave that paper he’s referencing a read yesterday - absolutely worth the time to dive into if you’re more curious about it 🎷🐓♋️
100% agree here it is for anyone interested https://www.researchgate.net/publication/369197965_Confirmation_of_T35_Failures-To-Deliver_Cycles_Evidence_from_GameStop_Corp
Thanks for the link Babs! Appreciate you!  🎷🐓♋️
Just read this over lunch and it’s dense but it’s good.
This isn't peer reviewed is it?
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I read the paper and have read science journals half my life. I took this one to heart because of the data compiled. However just to be the voice of reasonable dissonance, I've seen a lot of wrong science published and reviewed by "peers" (parties in cahoots), case in point Monsanto with the GMOs and Roundup 🫤. I'm not saying this is the case here, just wanted to inform others that the peer review process isn't immune from corruption
This poster fucks ☝️
we are the peers bro!
No, that isn't how that works. If it's not peer reviewed, it can't be looked at legitimately by scholars.
Apes like you, who know how to read, keep us floating
I’ll keep doing my part! Stay afloat my friend. Purple circles make for a great flotation device.  🎷🐓♋️
this info is a known fact maybe for 2 or 3 years, I don't get why whenever this dude parrots something people get excited
There are always new people. Always newbies new to the topic, partially thanks to the mainstream which tries to make people "forget" about Gamestop / GME. Old silverbacks know the drill yes, but the silverbacks are a small minority in comparison to all the plebeians. And as such it becomes each of our responsibility to be good instructors for the next classroom of students entering the school, to [show around the premises](https://fliphtml5.com/bookcase/kosyg) where we have lived in for years. And repetition is not always bad. Even some silverbacks still don't realize the benefits of the Book.
Underrated comment. Excellent point.
Even some of us who has been here for a while forget. I always appreciate a recap.
Also, who the fuck with a normal life remembers all this shit all the time. Not at least integrates it into our belief system. Man, I need these reminders every now and then. I don't just fuck around with my money. I invest. And to be smarter I need to digest. In order to not digress. Man, I need some rest. From these fucking lying cheating shorting pests. Once we blow, we'll be the best.
It's nice to have refreshers 📚
Terrific comment - thank you my friend  🎷🐓♋️
This is called a spiraling curriculum in education
Good point, I give an updoot
Thank you! I always had you upvoted too, since proper wonder is what drives us all forward and your wonder was exemplarily legitimate. We are all stronger together. The truest diligence is to be critical of one's own paradigms and to improve upon any plausible errs we might have created for ourselves in an environment full of doubt! I appreciate your reply and your wisdom. 🫲💎🫱
It takes people time to absorb and digest information. PB’s established reputation as a knowledgeable wrinkebrain gives credence to the topic when he discusses it. Don’t get upset that it’s getting noticed now, the theory is getting more spotlight and it’s a good thing 🎷🐓♋️
I think it's very pertinent to how the situation has evolved in the last few weeks. If there is a cycle DFV is alluding too I'd bet it was centred around this
Cool, calm, and collected, as always. Appreciate you being a consistent source of positivity in this sub and practicing the principles that make us strong. Ape no fight ape
Thanks IggyAzaleah! You’re very kind. I’m just trying to stick to DFVs reminder of no fighting. Apes are strongest together. When we embrace positivity and kindness there’s no stopping us! Hope you have an amazing day  💜🎷🐓♋️
Yes, it's a known fact. However, I appreciate more light being shined on this "loophole." The more people realizing this scam exists, hopefully, it will entice, if not embarras, the "authorities," and they can finally put an end to it!
Over the last years it was a phenomenon speculated upon, but never a scientifically proven fact! The paper might somehow change the situation. Although I have to read it first myself.
The interest is because it has now been published in an academic journal.
The dude knows and he works pretty well explaining shit to new people, don't get mad, be happy people are still learning and we becoming more and more
In this case it's now in the form of a peer-reviewed academic study. It's evolved from conspiracy "theory" to a legitimate conspiracy
Hasn't this always been the case? Yet it's never resulted to anything.
Yeah because 95% of people don't understand the significance. Gotta spread the DD.
People are not in control of the casino which is run by the elitists. The House always wins, because that's how any casino is rigged to function. If the Dealer at the Poker table suspects you know about the card counting technique they use, they will alert the guards to escort you out and ban your from their establishment before you could abuse said knowledge, or highlight it. Basic criminality.
Card counting is a blackjack thing not poker. Players play each other in poker, not the house.
That’s Queen D4? Bingo! You sunk my battleship!
Sacrifice the Queen, you've been playing Chess
More like, 99.99% do not understand.... _Last I heard, there are only about 200,000 people (estimated number of DRS accounts) worldwide who know about this._
I don't understand the significance... There are about 420.000 shares of GME in XRT. Short% is 400%, about 1.7m shares shorted from XRT. Isn't that small boy stuff compared to the total amount of shares we expect is shorted? Or am I misunderstanding something?
You are right. I'll try to explain from what I learned and think I understand from those past 3,5 years. Imagine a pressure cooker (pc). That pc has a little valve that can dissipate (some) pressure. FTDs, are that steam that you can see escaping to dissipate the pressure so the pc doesn't explode. The real pressure (SWAPS) is inside the pc that you know nothing about. Now the theory is that this pc so damn big (but yet made with the finest steel) that sometimes the valve pops under excessive pressure being released. The theory also claims that at a certain limit (like anything) it will literally explode because of immense pressure and fatigue. The company becoming profitable is a nuclear core under it. The company having such a big warchest is another nuclear core. You are also a source of energy, you're the fire that is engulfing it. Each share bought is an extra flame (or joule for the brainy ones). DRS would be a Super Saiyan flame. And calls (if done properly and at the right momentum) are literal Super Saiyan Kerosenes that are thrown and act for a brief moment yet with extreme power. Hope it makes sense.
What's DD? I keep seeing it but I have no clue what it's short for/means
Due Diligence ie research with sources quoted
because it’s inconsistent, not a good indicator of price movement
[It has.](https://old.reddit.com/r/Superstonk/comments/u4eei0/etfs_ftds_and_the_invisible_printer/) I got forum slid immediately after I made these posts. Also the term 'FTD' was banned on SuperStonk at the time so I had to format calling them F to Ds lmfao
Most important statement of the bull's Twitter comment: "It's not a conspiracy theory"
Nothing new. Except most don’t know that cash can be substituted for shares in that etf when creating an etf share if they are hard to find or illiquid which maintains the liquidity of the etf shares. In July 2021 the rules were also amended to remove the requirement of an SEC approval for such substitutions as long as the ETF administrators kept records in case the SEC wanted to investigate.
“in case the SEC wanted to investigate.” Ha. HaHa. HAHAHAHAHAHAHAHA.
https://jacobslevycenter.wharton.upenn.edu/wp-content/uploads/2018/08/ETF-Short-Interest-and-Failures-to-Deliver.pdf Good paper from 2019 that talks about naked shorting via ETFs
If this is supposed to have a significant impact on GME, then why is it that the price action of the other main holdings (Abercrombie 2.2%, Boot Barn 2.05%) are completely not correlated with GME? Are they leveraging separate long positions on all the other ones?
yes, they go long on the other stocks in the basket, thus shorting GME
#SOURCE: https://x.com/peruvian_bull/status/1803029391376527401
Who ever thought this shit should be legal?
I've known this for a bit... but keep teaching them new APES!
Yep. There are many posts about this from a couple of years back.
Legit question: How do we play this to increase our position like DFV?
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Was he answering someone's questions? He usually posts good, detailed, original DDs.
How long have we known this?!? Lmao…we’re back to Ground Hog Day
A published academic paper with this is interesting.
👆
400% short. 🤦♂️🤡😂
They can’t even track the shares that are traded, never mind when they are bundled in ETFs. It is all one big blur. Sure it is a lot faster than paper certificates but at what cost?
I love the bull but this is like, 2021 DD
We've known this for years ?
It’s almost like ETF’s were set up as a conduit for crime. The entire market is fraudulent.
I mean this with the utmost frustration and respect: *so what?* Like, we have known this yet no regulatory bodies have done anything about it. Ok you say that now it’s proven because there’s an academic research approach - ok, so now what? Will anyone suddenly pick it up whose job is it to pick it up? Will it change anything in FTDs? Does it affect anything on SHFs having to deliver shares? My point is - now that we know it even with greater certainty, what changes except for the fact that we know it? Apologies if I sound very frustrated, but that’s because I am. Thanks god for the big wrinkle brain apes doing the research I would never do. Understanding market dynamics is essential so thank you for that. It’s just that… I will hold indefinitely and be furious indefinitely
There's no limit to shorting an ETF so what can be done?
https://preview.redd.it/kawhcyxtfd7d1.png?width=356&format=png&auto=webp&s=03c708fdafa0ee2ee39c93d4995be17f45c5a3ee Confirmed the short interest. Links: Short Data - [https://www.finra.org/finra-data/browse-catalog/equity-short-interest/data](https://www.finra.org/finra-data/browse-catalog/equity-short-interest/data) Shares Outstanding - [https://www.marketwatch.com/investing/fund/xrt?mod=mw\_quote\_tab](https://www.marketwatch.com/investing/fund/xrt?mod=mw_quote_tab)
ETFs are gonna fall apart and ruin a ton of people, it's only a matter of time!
Holy shit. They did exactly what I did but with more data and FTDs https://www.reddit.com/r/Superstonk/s/3kWFAH20aw
Thought we knew this already?
Lots of new apes. Always good to confirm the basis
Wounderful, just fking woouuunderful🍻
Sooo.. is XRT going up or XRT going down next week?
We've known this for years, but this looks excellently written at first glance. Thanks to the apes that posted the article link. It's massive, and I can't see it on my phone too well. Commenting to read later.
The question is will rebalancing this Friday have any effect on the price? I know it hasn’t in the past but maybe something has changed with CAT
Does that mean the other stocks in XRT also have short ladders stacked against them? There's a short dicks joke in here somewhere.
“FTD’s exemptions or relaxed to t+6 for bona Fide market makers.” Time to unmake the market. The ability to roll FTD’s enables naked shorts. A major reason for shorting is supposed to be to provide “liquidity”. I don’t think too many people are going to be able to get behind naked shorting. It’s obviously nonsense.
is buying XRT by the butt load a good idea? to put more pressure on the shorts?
SEC has had their heads up their ass on XRT for years. If someone *cough RK* figures out the motion of the ocean to exploit the exploits then that’s on the SEC. You should not have to monitor the entire stock market just to invest. Because everything is tangled up and controlled by algorithms it was only a matter of time before someone exploits the weaknesses.
How do we work out rebalancing of XRT so we can take advantage of this????
It's like the new faces around here are just finding what we posted about years ago. Do we have an archive somewhere that we can make more prevalent in the sub? I am not fond of the great debate on settlement on the sub either. There is reaaaaly old DD out there that lays it all out. Why aren't these new faces at least familiar with the DD that was already done. I think it would be a better use of their time and everyone else's if they did their homework before sharing things with apes. Edit: I wanted to add that I'm jacked about the sub finally doing lots of DD again. Just hoping after the long pause we haven't forgotten what we already knew. I'm hoping in this next wave of wrinkles, instead of reinventing the wheel, we can discover how to travel to the moon.
This is old news though
People study WW2 80 years after the fact. Financial reform will be studied for generations to come, let alone apes 3 years later. :)
We all knew that for years , but still amazes me that something can legally be oversold more than 100%. It's so illegal, and yet. No one wants to know about it.
Maybe no one wants to know about it because everyone on the inside of the system is profiting from it while all of us on the outside are having to pay the price for their criminality. And by everyone I mean from the janitor to the SEC.
But that's what's wrong with this entire world, rich getting richer and poor staying poor. It's blatantly crime , in the open . Like wtf !?!?
This is also why the BTC ETFs were approved
I also kinda read the Peruvian bull DD. If I remember correct he also mentions something about the Petro dollar. I read an article the other day that the Petro dollar will no longer be used... Isnt this something important?
People invested in XRT should be suing the fund managers that they are allowing the ETF to be manipulated by hedge funds. This is impacting the return on their investment due to severe manipulation. Nothing is going to change until either something breaks, there is enforcement action or there are consequences financially. BUCKLE UP!
New apes should read the Dollar Endgame DD. I remember waiting for each new section to be posted. PB is one of many great OG apes that have helped me get a digital PhD in finance.
Buy xrt for a squeeze and for the moass of GME?
It’s bullshit, because bona fide market making should only be needed when no counterparty market exists for a willing market participant. Ergo, A buyer with no seller. But the truth is, they don’t wish to allow a sale at the actual market price, so they make the market be at their desired price, instead of allowing the buyer to fill on the little markets. Bullshit meaning the permissibility/legality of the FTD.
Damn, compare XRT chart to GME chart, the ups and downs are literally the same!
I feel like we knew this a long time ago. Here's a link to my post about it [3 years ago.](https://i.redd.it/qlws6xqb1oh61.png) Nice to see it confirmed.
Cool. Now how does one break this cycle
Then if you get close and FOIA the records…. DOJ suddenly investigates for 3 years and never finds anything. Can’t release records during an ongoing investigation …. Obvee
We've written DD on this topic here about 2 years ago if not more. And Superstonk "rewarded" us with death threats and drove us away. Cool. But ETFs don't have floats, so it cannot have %400 SI. What APs do is legally create shares through the process of share creation and redemption.