🚨The GameStop Crime Scene!🚨 Why does this persistent market manipulation against GameStop matter? Exchange Act §9(a)(2): You can't make a series of trades that create real or apparent trading activity, or push the price up or down, to get other people to buy or sell. Dumping shares just to knock the price down falls here. If a hedge fund or market maker were lending out the same shares to multiple people, or purposely failing to deliver a GME share so that they can create sell pressure without having to actually settle the trade, that is clearly illegal. Exchange Act §9(a)(1): This bans wash trades (trading with yourself) and matched orders that make a stock look more actively traded than it is. It is clear at this point that the seemingly different entities involved with shorting and distorting GameStop are coordinating, which makes them really just one entity and so the shuffling around of obligations is just wash trading. Exchange Act §10(b) and SEC Rule 10b-5: These ban fraud schemes, false statements, and misleading omissions connected to buying or selling securities. That covers "short and distort," where someone shorts a stock and then spreads false rumors or a misleading report to drive it down. It also covers a short report that hides the author plans to cover right after publishing. How many news agencies were part of the coordinated effort to make GameStop look bad? How many of them said the GameStop eBay deal was impossible when really it was just a straightforward offer backed by one of the largest banks in the world. What is impossible about that? The only honest thing those news agencies could have said about the deal that was negative was that there are loopholes in the regulatory system that would allow corrupt eBay executives the ability to make the deal very difficult which could make it take a long time to go through. Look at the short interest of XRT which is being used for borrow locates to short GameStop. It has been over 400% for years. And somehow regulators never even looked into it? Looking at the chart you can see where they are shuffling the obligations to and what that does to the GME share price. There are a lot of laws being broken by short sellers: -Spoofing and layering: This means placing big sell orders you never plan to fill so the price drops, then canceling them. The SEC charges it under 9(a)(2) and 10b-5, and the Commodity Exchange Act makes it a crime in futures markets. -FINRA Rule 2020: Brokers and other FINRA members can't use manipulative or deceptive devices. -Regulation SHO, Rule 203(b): Before you short, your broker has to have reasonable grounds to believe the shares can be borrowed. This is called the "locate" requirement. -Reg SHO Rule 204: When a short sale fails to deliver, brokers have to close it out quickly, generally by the start of trading on the day after settlement (T+1). -Rule 10b-21: It's fraud to lie about your intent or ability to deliver shares and then fail to deliver. This is the main rule against naked shorting. -Reg SHO Rule 201: If a stock falls 10% or more in a day, short sales for the rest of that day and all of the next can only be made above the current best bid. This is the short-sale "circuit breaker." Regulation M, Rule 105: If you short a stock in the restricted period before a secondary offering, usually 5 business days, you can't buy shares in that offering. The SEC can impose civil fines, make you give up your profits, and bar you from the industry, and investors can sue you. Willful securities fraud can also be charged as a crime, with up to 20 years in prison. And now Hester Peirce is out of the SEC which means that the criminals likely can no longer be shielded. Is this what was always meant by “No Cell No Sell?” Were we just supposed to buy and hold until the crimes against GameStop were prosecuted? Either way, here we are with the stage set to actually hold the criminals accountable for years of crimes against GameStop and the rest of the stock market. What are the actionable damages claims GameStop can now make? When GameStop originally issued the convertible notes back in 2025, they had an initial conversion price of $29.85 per share for the 2030 notes and $28.91 per share for the 2032. Under the original 2025 rules, if the stock had hit $29–$30, noteholders would have simply traded their debt certificates for shares. GameStop had to pay $358.4 million in physical cash out of their treasury to stop the equity dilution from spiraling. The new VWAP deal also cost shareholders an extra 10.1 million shares in dilution. The other claim is about the GameStop warrants which easily could have raised $1.9 billion for the company, which could be used to add shareholder value. It is clear there is a Judgement Day coming, the only question is whether it will be through a legal case or through a move to blockchain. If a lot of money through a lawsuit came to GameStop, the eBay acquisition would be easier and more of that value would go to shareholders. If it is a move to blockchain, like GameStop issuing its own tokenized shares and then buying the shares on the regular stock exchange back, it would force true price discovery and the resulting elevated GME price would require a lot less shares in the stock portion of the eBay acquisition, meaning GameStop shareholders would get more value from the acquisition. It has been a very long journey with GameStop, but it looks like it will be well worth the wait! LFG!🚀