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Trading Firms Face Scrutiny as Trump Media’s Market Manipulation Claims Resurface
Trump Media and Technology Group has leveled serious accusations against several major Wall Street trading firms, claiming they manipulated the company’s stock through illegal trading practices. The allegations, initially made in 2024, have recently gained renewed attention as one of the accused firms faces separate legal challenges.
Devin Nunes, CEO of Trump Media, sent formal letters to both Nasdaq and Congress alleging that Jane Street Capital, Citadel Securities, Virtu Americas, G1 Execution Services, and UBS engaged in manipulative trading activity involving Trump Media’s stock (ticker: DJT). According to Nunes, these firms collectively accounted for over 60% of the unusually high trading volume in DJT shares shortly after the company’s Nasdaq debut through a SPAC merger in March 2024.
The company pointed to DJT’s appearance on Nasdaq’s failure-to-deliver list as evidence supporting their claims. This list tracks securities where sellers fail to deliver shares by the settlement deadline – often viewed as a potential indicator of naked short selling, a practice where traders sell shares they neither own nor have confirmed they can borrow.
“The trading patterns we’ve observed suggest coordinated efforts to artificially depress our share price,” a company representative said. Trump Media formally requested congressional investigation into the matter, though no public probe has been announced since the letter was sent.
Market observers note that naked short selling allegations are notoriously difficult to prove. The practice involves selling shares without first borrowing them or ensuring they can be borrowed, essentially creating “phantom shares” that can artificially increase supply and drive down prices. While illegal, enforcement actions against major financial institutions for such activities remain relatively rare.
The accusations have resurfaced amid new legal troubles for Jane Street, one of the firms named by Trump Media. The quantitative trading giant currently faces litigation related to the Terra Luna cryptocurrency collapse and trading restrictions in India, bringing renewed scrutiny to its business practices.
Social media commentators have seized on these developments to revisit the Trump Media allegations. Several prominent accounts on X (formerly Twitter) highlighted the connection, with one noting that Citadel, Jane Street, Virtu, and Anson Funds are all currently facing various market manipulation lawsuits.
The situation has resonated particularly with retail investors, many of whom have expressed frustration with what they perceive as regulatory leniency toward large financial institutions. One widely shared post claimed that SEC fines against major trading firms typically amount to less than 0.001% of their annual revenue, effectively functioning as a “cost of doing business” rather than a meaningful deterrent.
Cryptocurrency enthusiasts have also weighed in, drawing parallels between the alleged manipulation of DJT shares and price movements in digital asset markets. “We’ve seen firsthand how coordinated sell pressure can impact prices,” wrote one crypto-focused commentator, suggesting similar tactics might be employed across different market sectors.
Despite the renewed attention, no regulatory body has formally charged any of the named firms in connection with DJT trading. The allegations remain unproven claims, though they continue to fuel debate about market integrity and oversight.
Trump Media’s stock has experienced significant volatility since its market debut, with price movements often correlating more closely with former President Donald Trump’s political fortunes than with the company’s fundamental business performance. This unique dynamic has made it challenging to isolate potential manipulation from other factors affecting the stock’s price.
As Jane Street’s legal exposure grows globally, market watchers will be monitoring whether regulators take a closer look at these long-standing allegations or if they remain largely confined to social media discussion.
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6 Comments
I’m curious to see how this plays out. Market manipulation harms investor confidence, so I hope the allegations can be properly substantiated one way or the other.
These are serious allegations of market manipulation. If true, the trading firms should be held accountable. But more details and evidence would be needed to assess the claims fairly.
Naked short selling is a serious issue if proven true. The trading firms named should provide a clear explanation of their activities related to DJT stock.
It’s concerning to see allegations of market manipulation, especially around a high-profile stock like Trump Media’s. Proper oversight and investigation are crucial to ensure fair and transparent markets.
I agree, any potential misconduct needs to be thoroughly investigated. Maintaining market integrity should be the top priority.
Given the political sensitivities, it will be important for any investigation to remain objective and focused solely on the facts and evidence. Transparency is key in these types of cases.