Research has surfaced that 98% of tickers had fewer FTDs than GameStop (GME).
GameStop has been the victim of short sellers for over a year now since it ran up to $347 per share in January of 2021 when it squeezed shorts from their positions.
The game retailer continues to be heavily shorted today with a 22.90% reported short interest (updated daily on FrankNez – source, ORTEX).
Keep reading to take a look at the GameStop’s FTD data.
Warren Buffett said the stock market is a device used to transfer wealth from the impatient to the patient.
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And it’s true.
But he never mentioned how the cards are stacked against retail from the beginning.
GameStop’s FTDs unveiled market weaknesses and lack of proper regulation in the system.
Gary Gensler admitted earlier this year 90%-95% of retail orders are not processed through the lit exchange – but rather through dark pools.
Naked short selling has become a serious problem in the market, but especially in GME’s story because of the blatant market manipulation the retail community has seen.
FTDs for GameStop have been at an all-time high as market makers fail to meet their obligation to buyers.
Lenders of the stock would have to force short sellers to buy back and return the shares to claim that dividend for themselves.
It will cause a ruckus!
This catalyst could just be the thing GameStop needs to trigger another massive price runup.
GME stock is up more than 279% in the past five years and seems to be holding steady in this bear market around the $90 price range.
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Today’s bear market has made it difficult for retail investors to cause GME stock to surge in spite of healthy buying volume.
GME stock currently has an average volume of 4.4 million.
In March we saw retail volume rise causing the stock to surge up to $199.24 per share before plunging due to halts.
Regardless of the market manipulation, a GME short squeeze is highly probable.
The short interest confirms GameStop is a short squeeze play.
The volume is the support behind the stock.
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And a stock dividend could just very well force short sellers to return all borrowed shares back to their lenders, triggering a MOASS (mother of all short squeezes).
Are you holding GameStop shares?
What are your thoughts on this stock dividend?
In your mind, is this the perfect catalyst for GME to squeeze shorts from their positions?
We know shorts are already overleveraged – not to mention the countless FTDs and synthetics floating out there.