The media technology company led by US President Trump - Trump Media & Technology Group (TMTG, stock symbol DJT), recently issued a warning about short selling of its stocks. The company has formally written to the US Securities and Exchange Commission (SEC), requesting an investigation into suspected "short" and market manipulation activities, which has sparked high market attention.
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ToggleQube Fund Establishes $105 Million Short Position on Trump Media
According to recently published documents in the German Federal Gazette (Bundesanzeiger), the hedge fund Qube Research & Technologies has established a short position of approximately $105 million against TMTG. This move has shocked the market and greatly displeased TMTG. The company sent a memorandum to the SEC on Thursday, expressing unease about Qube's operations and even hinting at potentially "suspicious trading activities".
TMTG: Suspecting Illegal Short Selling, Demanding Immediate Investigation
In the memorandum sent to the SEC, TMTG explicitly stated: "We urge you to immediately investigate these suspicious transactions and report the results to TMTG and all relevant civil and criminal authorities." The company further indicated that there are signs of potentially illegal "short" selling in the market. "Short" selling refers to selling stocks without first borrowing them, which is explicitly prohibited in the US market.
Short Selling Sparks Controversy Again, Legal but Often Criticized
While short selling is legal, it has long been controversial. Supporters view it as an effective mechanism for exposing corporate issues, while critics believe it can easily cause market volatility. Especially in politically charged companies like TMTG, short selling battles are more likely to ignite public opinion and regulatory attention.
Qube Responds: No Special Evaluation of Trump Media
Qube's fund responded cautiously, stating that their operations are entirely based on "quantitative models" and not making any specific assessment of Trump Media. While this response avoids direct confrontation, it cannot eliminate market suspicions about potential regulatory violations in their trading activities.
White House: Presidential Assets Managed by Trust, No Conflict of Interest
Given TMTG's high association with the former president, some media have questioned potential conflicts of interest with the White House. However, White House spokesperson Anna Kelly responded via email: "The president's assets are managed by a trust run by his children, with no conflict of interest."
Similar Allegations Not First Time, TMTG Has Previously Filed Complaints
It's worth noting that this is not the first time TMTG has raised market manipulation allegations against its own stocks. As early as April 2024, TMTG had reported to the SEC potential market manipulation activities on the Nasdaq, indicating the company's long-standing concerns about external market operations.
Trump Media's move once again brings the "politics x finance" topic to the forefront. With Trump still being the company's largest shareholder, TMTG's stock price fluctuations not only concern investor confidence but also touch on political sensitivities.
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