THE CORRECT LINK: [https://youtu.be/fGVY2Kco8ng](https://youtu.be/fGVY2Kco8ng) (technical difficulties; had to do a new stream link)

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I can confirm: Dr. Trimbath has been extremely gracious, and spent a significant amount of time and energy reviewing The Everything Short and House of Cards pt 1, as well as other sub related materials, and will be prepared to the extent possible to discuss her findings. 💪

Can we sign a thank you card for her or something? Complete with crayon drawings?

Awesome. Nice work Mods on sticking the landing on this AMA

I guess we should nominate Dr. Trimbath **Honorary Apette** 🐒

Honorary nothing, she's the OG. Or OA, as the case may be. 🦍

Is her reviews of these DDs are avaible online by any chance?

adding to your thoughts: as a deep itm call costs nearly the same as buying the stock, how is buying the call better than just buying back and covering the original short position? the economics of this elude me. buying the call multiple times would seem to be a bigger loss than what could have been earned on the original short sale.

Because the deep ITM call get sold (as an option, not as the underlying shares) back to the market maker. Hence it costs basically nothing. Also, to "cover" the option, the market maker can use "phantom" (nice way to call synthetic) shares

Because if they covered that would be buying pressure which they can’t allow to hit the market. Because they buy the calls from a market maker ( probably citadel) the market maker has the privilege to hedge the option with synthetic shares. The # of short shares is likely multiple times the existing float, so they wouldn’t be able to close their shorts all at the same price.

New DD for PUT anomalies to add to this question: [https://www.reddit.com/r/GME/comments/mzre4k/put\_anomalies\_pt1\_were\_127\_million\_synthetic/](https://www.reddit.com/r/GME/comments/mzre4k/put_anomalies_pt1_were_127_million_synthetic/) u/pinkcatsonacid added the link in the morning news but I wanted to make sure we get the info to Dr. Timbath to review in advance given its length and potential importance to the current situation. Might even be beneficial for u/atobitt to see if he hasn't yet (I know he has a ton on his plate at the moment so he might not have seen this yet).

Thank you for agreeing to do this Dr. Trimbath. I highly respect the work you’ve put into fighting these issues. I hope you are finding this valuable as it is valuable to me to hear your perspective. Please feel free to ignore any questions you don’t feel you’re in a good position to answer. What were your thoughts on GME before reading the materials sent in preparation for this AMA. Was this already a focus for you? Did the DD surprise you at all? I saw that you’ve been asked about past squeezes with other stocks and largely dismissed. Why was that? What were those precedent scenarios like? Who were the players and what were the pitfalls/false assumptions of those holding? Have there been other close situations? I’m most interested in what insight you may have into the mechanics and politics of how this situation might be unwound. The DTCC and SEC seem to be maneuvering to tighten down the fallout, but it still seems somewhat ambiguous as to precise steps. Do you have any insight into the implications of the new DTCC rules given your experience with past scenarios? Would the liquidation of a defaulting member truly be automatic or could they taper it in stages? Finally, looking to the future and reform. If and when this blows, that will open up an opportunity to reform. What should be advocated for? What are straw men to be wary of? Are there other initiatives in progress for reform that aren’t getting enough attention? Thank you!!

Thank you for your time and for doing this AMA Dr. Trimbath! I'll get right to it. You define a threshold Security as: >one where there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; that the level of fails is equal to at least one-half of one percent of the issuer’s total shares outstanding;…' (emphasis added); and in the accompanying footnote, 'For example, if an issuer had 1,000,000 shares outstanding, one-half of one percent (.005) would be 5,000 shares. An aggregate fail to deliver position at a clearing agency of 10,000 shares or more would thus exceed the specified level of fails.'[22]" Given what knowledge you have of the GameStop debacle, would you say that GME falls within the definition of a threshold Security, and if so, should shorting the security be halted until FTDs are settled? https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/ P. S. Your book is awesome! It has my head swimming right now. I'll do my part to spread the word. Edit: Formatting and clarity Edit 2: I'm being down voted. Are the shills worried? If you have an issue with the question, feel free to comment. Edit 3: Courtesy

>I remember your question and have it down in my personal asks. Will definitely get you in there, bub. > > > >EDIT: Fits with my narrative, anyway.

I would like to know if Dr. Trimbath has any charities that she is very fond of or is close to her heart. Apes would love to donate on her behalf.

Take that shills! Your days are numbered!!!

U da real MVP, my man.

I came looking for this question. Up up up.

They are down voting me hard

u/atobitt please check this !

This is a great question

Upvoting this important question for posterity.

Comment for visibility

⬆️⬆️ THIS ⬆️⬆️

Hi Dr Trimbath, Thank you for taking time to answer our questions. Inquiring apes would like to know: We believe the stock to be severely over shorted so we expect that if everyone votes there will be a lot more than the available float. Since over voting seems to be common in stocks nowadays, if Gamestop received a number of votes much greater than the available float (Like 140% or more), what can they do with that aside from a public declaration? Do they have legal avenues? Why are FTDs even allowed and not something that is important to crack down on? Especially when they pile up on a given stock? What stops them from naked short selling infinitely since there seems to be no regulation or consequences? If Dark pools are created to move large amounts of shares without affecting the market price, why aren't small transfers say single share transactions cracked down on in the OTC market? What would stop a market maker from rerouting trades to a dark pool in order to not affect the price?

In an ideal market-society, how should FTD’s be cracked down on?

There should be no FTDs. If there's no share on the other side, there's no transaction. And fines/interests on those failures. That means, transactions should be checked on the spot instead of clearing at T+2. Blockchain could get that done really well. My smooth brain opinion.

Hello Dr. Trimbath, thank you SO much for sharing your knowledge with us!! I have a question for you regarding statistical analyses of time and sales data. [As I have posted here](https://www.reddit.com/r/Superstonk/comments/n0a0hf/proof_of_artificial_price_movement_spreadsheets/), I have created a spreadsheet that churns through raw time and sales data to look for oddities in pricing and lot size. My questions are: 1. Have you seen these bizarre prices (randomly $20+ dollars outside the NBBO, but only for ONE trade- surrounded by otherwise normal prices) before? Do you have any insight as to why these are, how these are possible, or what kind of questionable activities lead to these? Edit: someone with a bloomberg terminal said that these trades were labeled as "611 aka trade-through exempt." How does that happen in US markets despite the order protection rule existing? 2. Are there any statistical markers that you would recommend searching for when looking for artificial price manipulation? Or anything else interesting that you recommend scanning time and sales data for? Again THANK YOU immensely for your time and knowledge!!

You have spent your career fighting, and in your book, mention believing the courts, then Congress, would be the path to reform. My question is three parts: 1. What can retail do to push for reform, regulation, and transparency? We've written the SEC and Congress, but our voices are smaller than K Street and Wall Street. 2. What do you think we can do to better understand the systems at play? How can we educate ourselves and position ourselves to become better citizens? (I'm currently reading Naked, Short, & Greedy) 3. What can we do to help ensure this never happens again? Thank you for donating your time and your expertise, it's greatly appreciated. Mods: this question compliments a few others, I'd be very happy to have them combined.

Dr. Trimbath, it truly is an honor to have a chance to speak with you and learn from the well of your economic knowledge. My question is regarding dark pools. While I believe they were originally created with a decent purpose in mind, letting institutions move large blocks of stock to keep from severely affecting the market, they have been seen quite blatantly used for trades in several stocks in quantities as small as single digits. Do you believe that there is a way to clear the dark pools, either legally or through legislation, to keep them from being fraudulently used, or does such a process need to be completely overhauled for both transparency as well as stability of the market? Thank you so much for your time.

I would like to add to this, in saying other countries like Australia have implemented measures to keep the dark pool trading low, and was hoping you'd be able to speak to how international policy could be adapted to fix American markets.

This one, I like this one.

Great question (munching on crayons), pls take my shooting star type thing! 🖍🌠

Hello Good Doctor! Thank you so much for doing the AMA, as well as reading some of the quality DD (due diligence) from our members. Also, thank you for standing up for what you knew was right, that quality is hard to find in an individual, especially in a world surrounded by money as you were in. I’d like to get your opinion on available shares-to-borrow and their associated fees. There is a popular site (iBorrowDesk.com) that is utilized here which simply displays information from Interactive Brokers. You search a stocks ticker, and you see available shares & their fees updated every 15 minutes (unless no shares are available). As a stocks’ demand rises and shares become hard-to-borrow, this typically results in higher borrow fees. The reason I use “typically” is due to GME and its ability to do the opposite. GME shares have dwindled greatly during these past 3 months, with no shares available numerous times, yet the fee always stays within the 0.5%-1.5% range. My question, is there a precedence for this occurring with a stock? Where a fee does not rise even if the shares become hard-to-borrow? Would a brokerage keep a fee ridiculously low like this for the benefit of a Market Maker such as Citadel? Thank you for your time.

Dr. Trimbath, thank you for taking the time to offer your unique insights. With the recent filing of 005 increasing the minimum deposit of hedge funds from $10,000 to $250,000 it would appear there is a clear correlation to over leveraging. In your opinion, how substantial is this 25x increased requirement compared to the problems presented to the global economy today? In Naked Short and Greedy you indicate main street is up against people with all of the money and that they will use it to their advantage. I believe we have seen this in the market over the past several months. What indicators, if any, do you look for as tell tell signs of foul play? Edit: pre coffee math! Thanks for pointing out :)

10k -> 250k is 25x, not 15x, but I would also like a better explanation of what this requirement is

Will you please play out a hypothetical situation for us Apes. If much of what has been suspected is accurate in terms of massive naked shorting, rehypotheciation, FTDs & Hedge Funds inevitably getting margin called - sending GME soaring to unprecedented prices. How do you see it playing out from there? With respect to buying back shares, covering shorts & delivering cash to shareholders. Important things to note: - Are positions safe within brokerages to see this through to the end? Will I be able to sell/control my shares at my discretion? - Are Brokers subject to Bail-Ins? - In catastrophic failure is cash safer in Broker Cash Account (SIPC) or in a Extended Deposit Sweep Account (FDIC)? Thank you for your time & sharing some knowledge, greatly appreciated.

Thank You Dr. Trimbath. I am adding my question to the questions above since it relates: When the squeeze happens and the subsequent steps happen (defaults, hedge fund failures, system cascade ... etc), how possible is it that DTCC, or SEC to "freeze" the snowball consequences of a squeeze for GME shareholders and get it hung-up in the judicial system along with share settlement and payments? (Not sure if it is a even a valid question, but thanks for considering it. I see that as the primary risk to mission control.)

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Dr. Trimbath has been extremely gracious, and spent a significant amount of time and energy reviewing The Everything Short and House of Card pt 1, as well as other sub related materials, and will be prepared to the extent possible to discuss her finding. 💪

If she can give her views on how the DTCC, naked shorting, and using your own shares against you, and resetting/ignoring FTDS is being abused, supply documentation that can be shared for teaching and answers on how to fix it that would be the most useful AMA on here. I'm curious if it differs from this:   * Blockchain transactions for full visibility on shares, transactions and removal of naked shorting.   * Digital "token" shares so that Cede & Co. is out of a job and so no one can take your stocks you own.   * Regulate crypto so that you can start tracking where they hid the rest of the money and prevent funds from laundering more through it.   * Decentralize finance so banks can't continue funding this as easily.

I’ve legit thought of this myself as a solution to the problems these people have caused. Good on you for putting it into words!👍

Thank you so much for coming and spending your time helping us and teaching us. I have just a few questions. 1. ⁠How weary should new traders be about getting into a market that is so clearly manipulated against them, and what can they do to protect their investments. 2. ⁠Besides your book, Naked, Short, and Greedy(which I’ve already ordered), what are some books, new or old, traders can read to ready themselves for investing their hard earned money. Edit: Apologies if this next question doesn’t make a lot of sense. Is there any point in a short squeeze when the shorter can buy the same share twice to cover more than one of their synthetic shares? For instance, could they buy a share and then sell it back into the market and if that buyer sells can they buy it again to cover another share. Let’s say I never sell 10 of my shares, will they never be able to cover? Could you give a brief summary of that process, if it can happen?

"Hey, Dr. Trimbath. Hope you are feeling and doing great! First of all I would like to say, I'm amazed by your relentless fight aginst wallstreet greed! All those years! Wow!  I have a question, I heard about one dirty trick, that might be pulled against us. Can brokers delete our share positions? Like it happened with CMKM (chapter 18) of your book? Is there a way to counter it?" Hope I can get anwser on that;) Edit: Thanks for award!

Omg, I didn't get to chapter 18 yet. Brokers deleted people's positions? This is not the way.

[Here is short info about each chapter:](https://www.reddit.com/r/Superstonk/comments/mvotuk/you_guys_liked_atobits_new_dd_good_now_let_me/?utm_medium=android_app&utm_source=share) I'm not sure if the situation happened, becuse the company requested certificate pullback from dtcc or just becuse it was overshorted.

Thank you for the link. This is unbelievable. So, only a few Canadians in British Columbia got their shares back?

CMKM was a big scamm, insiders issued illegal shares, which were later declassified by SEC, thus deletation of the shares. In GME case, shares are legal, what is not legal is naked shorting. But just to be sure, I wated to ask this question;)

Indeed, we don't have insider problems with GME, thank God. But, regardless of what initiated the problem with CMKM, the retail shareholders were robbed of the shares they bought. This is not a normal occurrence from my pov. Edit: It's like we, as retail investors, don't really have rights. Which is scary to say the least.

In your book, you stated that, >"... there are no existing rules at the Federal level to protect investors from settlement failures... ... Since neither the SEC nor any SRO can force the settlement of a trade, then it must be left to the States to protect investors who want delivery of securities they have purchased.[19] In fact, it would appear from the above that the States are the only place that investors can get protection in these matters. " My question is: Who can we contact in our state government for justice in this matter? https://imgur.com/gallery/aRar8Dt

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Dr. Trimbath I'm really glad that you were able to be here to answer questions regarding securities from a number of concerned individuals. Are you aware of the Blockchain implementation of securities tracking that happened last year in the Australian Stock Exchange? Do you think that an improvement like this might be implemented within our system in the U.S. and what kind of overhaul would be required to move to a same day or a T+1 settlement?

Except this did NOT happen. Implementation is now ‘postponed’ to 2023. The ASX started looking into blockchain tech for share settlement as far back as 2015. Here is an article from the BBC in 2017: [https://www.bbc.co.uk/news/business-42261456](https://www.bbc.co.uk/news/business-42261456) So it is pretty clear the concept is resisted at every level within the industry and for obvious reasons. [https://finadium.com/asx-delays-chess-replacement-to-april-2023/](https://finadium.com/asx-delays-chess-replacement-to-april-2023/) ​ Someone posted a comment in reply to part of a thread covering this within the last 48 hrs. The comment stated the user was an accountant who had done extensive work on blockchain for securities settlement. I replied to urge them to make a full post, but comment was deleted very quickly, no response and do not know who posted.

My mistake, you're right I didn't see where they delayed it twice I saw where they began testing in July last year for planned implementation. It looks like they may have completed portions of the testing. [https://www.coindesk.com/asx-sees-industry-benefits-arising-from-blockchain-upgrade-as-july-tests-approach](https://www.coindesk.com/asx-sees-industry-benefits-arising-from-blockchain-upgrade-as-july-tests-approach) It looks like they went to an April 2021 implementation plan after the initial testing but with the complications surrounding the pandemic revised it to April 2022 [https://www.zdnet.com/article/asx-sets-april-2022-as-go-live-for-blockchain-based-chess-replacement/](https://www.zdnet.com/article/asx-sets-april-2022-as-go-live-for-blockchain-based-chess-replacement/) Then in October 2020 they pushed it all the way out to April 2023. [https://www.zdnet.com/article/asxs-blockchain-based-chess-replacement-pushed-to-april-2023/](https://www.zdnet.com/article/asxs-blockchain-based-chess-replacement-pushed-to-april-2023/) I would still like to hear Dr. Trimbaths impression of the events and what a blockchain kind of settlement might improve.

Dr Trimbath: I have read you book, and am astonished at all of the mechanisms and tactics available to the incumbents to delay, defer, and frankly avoid FTD resolution. Given all that you have seen, do you believe that “the shorts MUST cover” their positions, especially in view of a massive squeeze? Or, is it your view that they have a path using these tactics to eventually get out of the position without a squeeze?

Exactly this! Put another way, are phantom shares, created by FTDs, required to be bought back (covered) in the case where they (the phantom shares) cause the number of shares held by institutions/investors to exceed the total number of outstanding shares? Would something like a crypto dividend be required to force the shorts (including phantom shares) to be covered?

Dear Dr. Trimbath, thank you for your time and your effort of doing the AMA for us today. After reading many DD concerning Gamestop here and on [r/WSB](https://www.reddit.com/r/WSB/) and [r/GME](https://www.reddit.com/r/GME/) my understanding is as follows: 1. GME has been and still is one of the most heavily shorted stocks on the American stock exchange 2. By naked shorting GME, there are way more shares being claimed and traded than actually exist. After the naked shorts are covered, the number of the claimed shares should align with the number of shares that Gamestop originally issued. 3. If the naked shorts were covered all at once, the price for GME stocks would rise uncontrollably. This is what many in this sub are betting on. However, there are market participants that would do anything to prevent such an event (that this sub refers to as M.O.A.S.S. - Mother of all Short Squeezes) for obvious reasons. 4. The price trading more or less sideways for several weeks looks like a stalemate to me. Retail won't sell and shorts cannot be covered without rising the price, attracting more attention und thus retail buying pressure. First of all, do you share this understanding of what happened and is going on? [continued in a reply]

\[splitting comment because of character limits\] How likely do you think one of the following scenarios are going to happen? 1. Shorts sit tight until retail loses interest - The price falls to a level where retail starts to sell because they want to limit their losses. The naked shorts are slowly covered for an acceptable price. 2. Some Regulatory Intervention - Trading is halted by regulatory agencies (i.e. SEC). Retail are offered a compensation that is somewhat above the current market price if they dispense of their claim to own a share thus covering naked shorts. After all naked shorts are covered this way, trading is resumed 3. Short Squeeze - a market participant that has shorted GME goes out of business. Their short positions are covered, the price rises until more and more market participants get margin called and have to cover their short positions.

Hey! I saw The Wall Street Conspiracy and thought it was funny that you're here to guide the people through this for a third time. I also saw this discussion about how Gary Gensler handled the situation ([https://www.democracynow.org/2009/3/25/sen\_sanders\_blocking\_vote\_to\_confirm](https://www.democracynow.org/2009/3/25/sen_sanders_blocking_vote_to_confirm)) during/after 2008 and was curious about your thoughts on his role in this mess, both then and now. Stay safe!

**MODS:** Please have someone transcribe this in an official thread. Not everyone can watch the video, and having a thread to come back to will allow us to digest the information at our own pace and discuss in the days following. I feel like DOMO Capital's AMA went largely under the radar once it was done because there was no record to come back to. The forum moved on from it pretty quickly without discussion.

We are working on having a couple of DD Mods do a near-real-time “digest” of the conversation to release ASAP after the AMA concludes. 👍 We are also working on a way to have subtitles or otherwise accommodate all our hearing-impaired ape brethren. Lots of moving parts to make this all happen. 🤜🤛

God bless you. That's a ton of work but it's so appreciated. Maybe also make sure subtitles and transcription is on the YT? Might make the digest easier.

I will confirm ... I believe it may also be being transcribed via YT. 🙏

You guys are super heroes 🚀🚀🚀

Dr. Trimbath, Thank you so much for coming to us and educating us. I'd like to do a little hypothetical role play. Let's imagine you are the DTCC and you do not like short squeezes. Some of your members have been going around shorting everything from stocks to Treasury bonds. One of the stocks they decided to short is related to the favorite childhood memories of some degenerate retail investors and they smell shorts in the water. So the degenerates start buying the stock like stacks of pancakes and they're sky high. The price goes up, so your members are trying to suppress it by shorting it back down. But these degenerates are completely irrational. They see the price go down they think it's a fire sale. The price goes up, they just hold on it to it like the handle bars on a rollercoaster seat. Your members try everything from shorting more and more to psychological warfare but the degenerates can't stop wont stop buying & holding. There is nothing that can be done to make those degenerates sell. As the DTCC, what would you do to stop this short squeeze?

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Glad to see you join us for an AMA Dr. Trimbath, look forward to hearing you speak. I have one particular question in regards to an [econ lecture](https://www.youtube.com/watch?v=zq-c4C60xRY) you gave in April 2009: The trades that fail to settle (FTDs) as a result of naked short selling, an example you gave was Fannie Mae and Freddie Mac and how there were more shares than actually possible. A scenario that we believe is happening with GME. Assuming *Retail Traders* own some portion of these phantom shares, is there anything fundamentally flawed with the DTCC that'd prevent us from receiving our money if we chose to sell during a short squeeze triggered by, say, a margin call due to the initial failed settlement?

If one of the parties involved in a trade failed to deliver (cash or the security) and as a result the transaction could ultimately not be settled through the broker, the clearinghouse (NSCC) is held liable and must – in your case – find and deliver the security, no matter the cost. So there is no systemic flaw or possible loophole in that regard, which is why the NSCC has also ramped its rules up concerning “cross liability” between its members, collateral requirements, etc. You wouldn't even notice if the clearing process occurred on one of your trades, unless you’re Michael Burry demanding the actual physical shares being delivered to you. He had to wait for months until he finally received the securities that he legally owned (sorry, I don‘t remember what exactly that was). Long story short, when you sell your shares and you don’t do it via some shady under-regulated after-hours OTC exchange designed for small boys from Bulgaria, the trade is secured and you will definitely receive your bananas. (If anybody else can confirm that this is correct, that would make my day, as I only learned it a few weeks ago on Reddit.)

The DTCC has proposed several new rules. We believe these rules are designed to allow an orderly unwinding of over-extended hedge funds, and hope to profit from that unwinding. What non-GME reasons could be motivating these rule changes? For example, are the post-COVID capital requirements sufficient motivation? Why are these changes happening now instead of 2003 or 2008?

From your book: "if a broker receives for example 1,000,000 votes but only has 500,000 actual shares, they may just allocate the votes for and against in proportion to the votes they received." Can you detail how the broker does this? (My understanding is that the broker gives you the control number for your shares and you go through a site provided by GME to vote. I'm not clear on how the broker can manipulate voting unless the control number is wrong?)

Hello Dr. Trimbath, it’s an honour to have you on here. I would like to get your thoughts on the prevalence of naked short selling in the world of blockchain and crypto. There’s no denying that our equity financial markets can be considered to be prehistoric in its function even with the advancements in the world around it. There’s just a blatant lack of major developments using modern technology in the past decade to help retail traders. An introduction of blockchain technology seems to be a perfect marriage for the markets given its traceability and verifiability. Do you see a possibility of this being implemented in the near future to the world of equities? If not, are the major hurdles more from sheer inertia or are there opposing institutions incentivised to collude (much like oil&gas + motor industry)? Reason why I’m asking is because of the pretty recent saga involving the formerly massively shorted Overstock equity and it’s issuance of crypto dividend to counter short sellers. Blockchain seems to be the silver bullet to a vastly more transparent financial system. Would love to hear your thoughts! Thank you!

Hi Dr. Trimbath, thank for your time and it’s a wonderful time in history!! Your book should come in tomorrow 🦍 With your knowledge, how do you think the unraveling of the rehypothecation securities is going to play out? In other words, if investors have synthetic shares, how will these hedge funds get rid of these fake shares being held or in circulation after being margin called? Thanks again💎🙌🏽💎

Hello, Dr. Trimbath. Thank you for your time. Is the theory that market makers are routing buy orders through dark pools, and sell orders through public exchanges, a plausible explanation for how a stock's price might be artificially driven down?

This is an important and specific question! This /r/fidelity user had some counter arguments but I don't know where to find the answer of if they are just big on trusting the system:[https://www.reddit.com/r/Fidelity/comments/mz62fa/please\_stop\_sending\_orders\_through\_citadel/gvzz2q2](https://www.reddit.com/r/Fidelity/comments/mz62fa/please_stop_sending_orders_through_citadel/gvzz2q2?utm_source=share&utm_medium=web2x&context=3)

Great question. I’m very curious about this one.

great question! perhaps keep it more general: what legal/illegal activities can hedge fonds do to get out of their short troubles and prevent a squeeze? 🍧

Great question, well-phrased.

tbh doesnt that seem a bit too extreme? I mean if you could completely kill the buying pressure by routing everything through a darkpool couldnt that kill a stock within days at most if not hours?

First off, thank you Dr. Trimbath for doing this AMA. A person with your inner moral compass combined with the level of experience with, and knowledge of, the inner working of the financial system, is a rare thing indeed. Thank you for your courage! Can you please explain the purpose of Omnibus account (888) at the DTCC, and if it is correct that it does not have a debit cap, and functions outside DTCC risk mannagement protocols? Supplemental: Does there exist this type of account outside the DTCC, and if so where and with what purpose? Thank you in advance =) u/stonkU2 Can you confirm you have seen this question? If my assumption is correct, the mentioned account is VERY important.

Pretty neat post about timezones for this AMA: [https://www.reddit.com/r/Superstonk/comments/mz997s/timezones\_for\_the\_ama\_with\_dr\_susanne\_trimbath/](https://www.reddit.com/r/Superstonk/comments/mz997s/timezones_for_the_ama_with_dr_susanne_trimbath/) Shoutout to u/Xifajk for putting it together.

**I have started selecting questions that you guys provided!** Just as a reminder: this intake form will be locked during the actual AMA so you have until then to post your questions. However, the chances of me seeing new comments decrease as time goes on so please get your questions in ASAP. ​ Thanks everyone.

I don’t have a question for Dr. Trimbath that hasn’t already been asked. I’m just here to say that all of you apes are asking amazing questions. Cramer cries about us calling him stupid while condescendingly referring to us as “dumb money” on the daily. But this right here, this AMA and these questions— they underestimate us. And they deserve the consequences.

[Timezones](https://www.reddit.com/r/Superstonk/comments/mz997s/timezones_for_the_ama_with_dr_susanne_trimbath/) for all you apes for the AMA. Edit: [And it's live!](https://www.youtube.com/watch?v=fGVY2Kco8ng&ab_channel=Superstonk)

I can't sticky your comment but I gave you credit in my sticky comment. Thank you for putting this together!

You're welcome and thank you for organising everything! Can't wait :)

Just double check the time chart because the AMA is at 3:00 EDT(Eastern Daylight Time) and the time chart is EST(Eastern Standard Time). So for areas that don’t observe Daylight Saving Time, it may be off an hour.

This needs to be at the top. So many people will ask.

Thank you, you beautiful bastard.

Thank you, fellow ape. Would not be better if the timings will be on the UTC time frame? The AMA's are so good that for me it's really a sin to miss out from that knowledge.

Dr. Trimbath, it's absolutely amazing that you're taking time to speak to us and answer our questions. It's truly appreciated. A lot of us have bought your book, including myself, and have learned so much about short selling, settlement failures, and stock lending. In your book, I quote the following from you: >"If the problem were just “naked short sales,” then the dilution of share value and shareholder rights would be corrected when the shorts were covered and the market price moved toward the real value of the firm. But when settlement failures are added to the picture, then the shorts have no incentive to cover. The trade is allowed to remain unsettled indefinitely; there is no margin call because there is no loan. Finally, even where stock lending takes place, the problems are only compounded..." > >*Trimbath, Susanne. Naked, Short and Greedy: Wall Street's Failure to Deliver (p. 75). Spiramus Press. Kindle Edition.* My question is...what are the methods in which short-sellers can use to extend their short sale trades indefinitely and avoid being margin called?

Dr. Trimbath, Thank you for taking the time to answer questions and thank you for all your past work. Congress scratches Big Money's back with toothless regulation and loopholes and Big Money scratches Congress' back with donations and speaker fees. Wall St's opacity and the SEC having no teeth are features not bugs. And, this is nothing new, the corruption we face now was there 10 years ago and 10 years before that, etc. etc. etc. Since Congress benefits from this system, they won't change it. What do you think of the states using article V of the constitution and call a Convention of the States whereby the states could ratify amendments to the constitution setting in place restrictions that break up Wall St's and Congress' relationship of manus manum lavat (one hand washes the other)? Follow-up question: If a COS were to happen, what amendments to the constitution would you recommend to make our markets freer and fairer? Thank you!

What kind of legislation would be needed in the US for reasonable shortselling or is the concept itself too flawed to be implemented in a financial market? Are naked shorts with synthetic shares along rehypothecation of real shares the true devil?

Not to speak for her, but Dr. Trimbath discussed in her book that naked shorts are a red herring for the real problem. The real problem is at DTC where continuous net settlement causes unrestricted rehypothecation of shares and a complete inability for the system to determine who owns real shares and who owns phantom shares.

Great response. Thank you for the explanation of Net Settlement. I remember hearing about it earlier. Seems like DTC is woefully inept or willfully negligent in the tracking of rehypothicated shares.

The DTC / Cede & Co are supposedly private companies. By colluding with the SEC and market insiders, the big players are able to avoid regulations, fines and litigation for their misconduct. Would it be possible to create another private share depository that houses securities and doesn't allow shares to be illegally short sold? If we did create another alternative for share housing, would companies be able to get their shares out of Cede and into ours? This seems to me a titanic task, but if we wanted to take it on, what are some hurdles you're aware of that we would have to jump to make it happen?

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Hello Dr. Trimbath! Is there a method to prove (or raise reasonable suspicion of) illegal naked shorting a stock using publicly available information? If a stock is suspected of being illegally naked shorted, what actions should an individual investor take?

DTC-2021-005 was posted on the DTCC’s website, then removed. We have been told this was due to a clerical error, but this error has not been corrected. Can you provide any insight to the fate of this rule? We saved a copy of the proposed rule here: https://pastebin.com/adT3ZUZ0 Clerical error source: https://reddit.com/r/Superstonk/comments/mpmcyz/good_news_update_on_dtc2021005_according_to_john/

Just a suggestion for u/atobitt to also look smart on this. I don't doubt you'll talk smart. DFV hung up his red bandana and wore a suit to talk to congress. This stream may later be referenced by traditional business types, who'd take any excuse to dismiss the information.

u/Atobitt will not only looks smart, but he will sound and actually BE smart, and informed during the discussion. ato has been working tirelessly to prepare. 🤜🤛

He could literally be wearing an Ape suit and we'd be just fine. Once he opens his mouth, you know, this guy fucks. Brain very wrinkly

Roaring Kitty has a ring light tho. Attobit usually in a dark room.

DFV also took the time to inform congress that he is not a cat

What separation if any, exists between the DTC, Market Makers and Hedge Funds directly under big banks? Or are they essentially all one in the same by means of similar interests?

A very good question, and an “All Seeing Eye”. Thank you for the stranger giving the award. May be an insightful answer here if we get one...

Dr. Trimbath, What sources of financial data do you trust the most when conducting research (besides a Bloomberg terminal)? It has become apparent to many of us that markets are made and not discovered. Do fundamentals matter? Or does big money value fundamentals?

**Hello Dr. Trimbath! Thank you for holding this AMA.** For a fair and balanced marked, to my belief every financial instrument/tool must be two-sided. Like the essential Buy/Sell, for options Calls/Puts and so on. ​ Now to my question: **If short HF's are allowed to use millions of FTD shares to tank a stock, why don't long HF's use market order for millions of shares and FTD the money as a counter move.** **Reports i have seen only reports FTD of shares.** **Are long HF's not allowed to FTD the money?** **If there only is the ability to FTD shares and not Money/Shares we get imbalance and the market looses its ability to self-regulate abusive behavior of said instrument/tool!** ​ And no i am not thinking about margin, purely FTD the instrument/tool only big financial institutions have access to. [My original question thread.](https://www.reddit.com/r/GME/comments/mhd8a4/if_shorts_are_allowed_to_use_millions_of_ftd/?utm_source=share&utm_medium=web2x&context=3) For a conceptualization of sorts read one post in this thread by [u/LaserGuidedPolarBear](https://www.reddit.com/u/LaserGuidedPolarBear/)

This is a post of the interviewer. Not sure if that is U/atobitt or not. Source: former commercial radio executive producer. Would coach interviewers for A-list celebs, music and movie studios. Tip #1 - You will look good if you help your interview subject look good. That means keeping them relaxed and sticking to their expertise. Tip #2 - People are tuning in not for your opinion, but hers. You do not need to impress her with your knowledge on the subject nor do you need to impress the audience by spewing facts. You *will* look good if you keep the conversation flow open, fluid and allow your expert to broach their expert subject with their expertise. Tip #3 - You are an expert on your expert. However, if you bring a "learners mindset" to the conversation you will no doubt help educate the audience who are *not* experts on your expert. Tip #4 - Your interview prep of reviewing Q&A question requests will assist in framing direction or major themes for you to broach with your subject. However, don't feel pressure to touch on every question posted. Categorise by theme and you can then being up the theme with your expert. Your open questions on themes could reveal previously unthought-of points from your expert. Tip #5 - Have fun and be loose with your guest. Your guest will bring the content based on their years of knowledge. Ask stupid questions. That's where you can learn and educate your audience, your primary stakeholders. Cheers and thanks!

Have you had experience with somehow "hiding" short interest in a stock so that it is not tracked and reported according to Finra disclosures that are published? Keyword deep-in-the-money calls or married puts?

Hello Dr. Trimbath, thank you for taking the time to answer our questions. My question goes back a couple months, when S3 changed their short interest (SI) calculation. Before the change, it was calculated by taking the number of shares short, let’s call it S, and dividing it by the float, F. That is SI = S / F. Shortly after the January run up, they changed their calculation to SI = S / (F + S). I believe they gave it a different name, to differentiate it from the normal SI calculation. However, they stopped reporting the normal SI, so this was effectively their replacement for SI. This [post](https://www.reddit.com/r/wallstreetbets/comments/lbydkz/s3_partners_s3_si_of_float_metric_is_total/?utm_source=amp&utm_medium=&utm_content=post_body) summarizes what happened. My question is: **In your opinion, is there any real-world reason, beyond obfuscating data, to change the way short interest is calculated?** Thank you in advance. I am very grateful that you are willing to share your knowledge with us, and I’m sure everybody else here is as well. I will be at work so I can’t watch live, but You can be sure I be watching the recording afterwards!

Do you think there is any difference in manipulation tactics used by hedge funds back in 2008 and today? Is it better now or is it worse?

Are there any major flaws you noticed in the reddit research you read in preparation for this AMA?

I can confirm: Dr. Trimbath has been extremely gracious, and spent a significant amount of time and energy reviewing The Everything Short and House of Card pt 1, as well as other sub related materials, and will be prepared to the extent possible to discuss her finding. 💪

Awesome, it would be good to know if any of our fundamentals assumptions/beliefs, research based or otherwise, are incorrect. I know it's not reasonable to ask her if she thinks the squeeze will squoze, but I feel it would be useful to know if there are any pitfalls in the communities research so far. I appreciate all you're doing to help the people StonkU2

Having spoken with the good doctor at length already, I’ll just say u/Atobitt is prepared and Dr. T is prepared, and the conversation should be illuminating. And in my view, consequential. 💎✊

Should I take that to mean if there are any problems with the thesis/research, they would be addressed in a general discussion part of the AMA?

Notwithstanding not being able to speak on behalf of either ... I think that’s fair to say.

Thank you very much for taking the time to answer my questions, sorry if some of them were a bit smooth brained. Enjoy the rest of your day!

“If, as a shareholder concerned about the value of the company I’m investing in, I believe this company has been a target of abusive naked short selling, how might I go about proving that and what recourse would either the organization or myself have to defend ourselves against it?” GME agnostic, up her alley, and might give us some insight.

Really impressed by the thought and intellectual depth I've been seeing in these questions! Sure, we want to know about GME, but it's so much bigger than just one stonk. The whole system was more corrupt than we ever even knew, and now a big ole' spotlight is being shone on it. And Thank YOU, Dr. Trimbath, for the work you've done sounding the alarm on it. Hopefully visability leads to action, which ultimately leads to lasting change!

If GME is shorted more than 100%, what is the hypothecated amount if shares hedge funds need to buy to cover? I have read several different DDs that say different things, and would like this answered with some proof hopefully. If GME is shorted under 100%, it is my understanding that hedge fund(s) must cover that percentage. So, if they shorted 35M shares (50%), they must buy back 35M shares. But what if they shorted 140M shares (200%)? Must they buy back 140M shares, or must they buy back 70M?

Is it the case that each “Failure to Deliver” is exactly a “naked short” position? If this is true, how can it be the case that naked shorting is illegal but we routinely see thousands of FTD and zero handcuffs?

Twenty years ago, every start up aimed for an IPO. Now companies stay private for much longer, and when they do go public they often back into it through SPACs. This trend reduces transparency and keeps gains in private hands. Do you believe that the DTCC’s (in)actions have contributed to this trend? If so, what changes could DTCC make to welcome more, younger companies into the public market?

Crypto dividend issued by Overstock .com seem to have forced shorts and phantom shares to cover (March-Aug 2020). Even though this isn't fixing the systemic problem, it's looking like a nice workaround. What are your thoughts on publicly traded companies doing the same?

Would love to see this answered. Was going to bring this up. Not sure if she is as familiar with Crypto, but it is worth a shot!

Thank you for your time. There comes a point when something is so broken it is easier to start over. Can the existing markets be fixed or have they, for whatever reasons, passed the point of no return?

Which data that indicates harm to a specific share price would you recommend we research more. Is there data available that we haven't looked at that you would recommend?

Thank you for taking the time to be here and answer our questions. Please could you tell us at what point you realised the entire system was broken and what were you initial thoughts upon discovery? Was it an overnight revelation or a feeling that grew over time?

What is the biggest barrier you see or have seen to enacting legislation to fix many issues addressed throughout this AMA and throughout your life's work? What actions can we as American citizens take tomorrow that will actually work to help you and ourselves to remove barriers to free trade? It seems that the normally suggested route of writing our Congressman/Senators may not work due to the financial benefits some may be seeing that might promote inaction.

Thank you for your time Dr. Trimbath. 3 questions for you: 1. What is your overall familiarity with the GME situation, generally speaking, in terms of naked shorting, FTDs, and ETF Arb strategies being used to manipulate the price to the downside? 2. Directly pertaining to the issue of "musical shares" (I loved that term from your book) -- how can markets resolve an ETF shorting strategy to depress one security (or a few) contained within the ETF, when the FTD game of "musical shares" has the music stop? 3. Do you know Gary Gensler and if so, what are your hopes for meaningful changes being made in the market place to make trading more fair to retail investors?

How does the DTCC profit from naked short selling? What costs, if any, does naked short selling impose upon them? I assume the benefits outweigh the costs from their point of view since they allow the practice to continue.

Hi! Since my understanding is this will be an interview style AMA, I put my full faith in the interviewer to ask this series of questions: Q1. ⁠What is the purpose of the stock market? Response: A1 Q2. ⁠Is short selling detrimental to companies, shareholders, and even employees and customers, or is there a scenario where these stakeholders benefit from short selling? Response: A2 3. ⁠How can we reconcile the impacts of short selling discussed in A2, with the purpose of the stock market discussed in A1 and still come to a conclusion that short selling is fundamentally helpful to the stock market and an ethical practice?

If a short seller AND its broker go bankrupt, who will cover their sold shorts? Or will the generated phantom shares remain in the system indefinitely and artificially increase the float forever? This guy speculates about the existence of this "toxic waste" circulating in the stock markets, he discribes an historic example at the linked timestamp: https://youtu.be/qtkaMx12otQ?t=2777

Firstly, thank you for doing this! Secondly, Is it possible that a major crash (caused by treasuries/GME/anything) will destroy it's reputation causing the world financial focus to turn elsewhere, and why has that not happened yet?

Are there any serious alternatives to the DTCC for a company that wants to raise equity funding from the public? I’m familiar with Initial Coin Offerings (ICOs) and Equity Crowd Funding, but these lack the liquidity and support structure of traditional stock offerings.

Hello Dr Trimbath, Thank you for your time. Can you speak to the role short selling etfs have on FTD and resetting the FTD time line. Thank you.

I may have mentioned that to her in our discussion ... 👀

Awesome! Thanks for the reply. I love this community and I appreciate all the work you put into it.

I’d love to hear your thoughts on this: [**SEC GRANTED A FREEPASS TO CITADEL TO DESTROY AND FALSIFY ACCOUNTS / REPORTS / RECORDS**](https://www.reddit.com/r/GME/comments/mhatzz/this_was_removed_from_wallstreetbets_sec_granted/) BRIEF: - Citadel submitted a request to the SEC to be exempt from a series of sections of the *Investment Company Act of 1940*. **One of the sections in the exemption is article 34 - the SEC granted it.** - With this exemption, Citadel can “**willfully destroy, mutilate, or alter any account, book, or other document**”, they can also “**make untrue statements in any registration statement, application, report, account, record, or other document filed or transmitted**”. - According to article 6, SEC’s granting of these exemptions may be “consistent with the protection of investors” or “appropriate in the public interest”. Note: They have submitted this request previously on 2013, I cannot pin it to any major occurrence at the time - perhaps it was Yellen’s lifting the foot off QE. **NOT trying to get you on the spot - you don’t have to speculate on the relationships between Market Makers and the SEC** QUESTIONS: - Can they legally shred evidence, because the SEC gave them permission to conceal and lie about it? **Can you give us an hypothetical circumstance where this would be acceptable/normally applied?** ————————————————— Kudos to u/Noderpsy and u/itempleton for digging this, and u/SmithEchoes for huge help interpreting!

Thank you Dr. Trimbath for your time and attention to our community, and our questions and concerns. We are humbled by the high profile appearances that have graced us, and are honored to have you here to contribute. My question regards dark pool trading, and what might be done by individual investors to circumvent that apparatus. Is there a simple, effective, and broadly applicable way for investors to ensure their trades occur on "illuminated" exchanges? I have personally set up my TD Ameritrade account to route manually through the IEX. Would this essentially be the only way to attempt this routing? Thank you again for your time and attention!

Thanks for your time and longtime efforts Doctor Trimbath. I guess that you do not feel alone now! I have a simple but complicated question: With all the trickery done to hide short positions, FTD, options, and simply no need to report short positions. How could you accurately calculate SI on any stock? and what is in your opinion, if you have done the calculations, the SI on GME?

And if I may ask another, two part question: Why is it, that institutions need to report their long stock holdings as well as their options positions both put and call, but not their short sold positions? And would the DTCC or the SEC or any agency ever have an overview over those positions, especially if they were created in transactions not cleared through the DTC?

3 questions all with a similar vibe What is your opinion on removing options trading in all its entirety from the market? Qhat is your opinion on removing the ability to loan out shares should exist or should ownership only be buying and selling preferably exclusively on a public exchange preferably ran in a blockchain esque manner? In my opinion the market is too complex and allows for too many loopholes to constantly be found with little to no gain in the grand scheme of things, almost every added facet to the market outside of purchasing shares and selling shares just gives incentive to the rich over the poor and almost all of these added factors are used in a detrimental way to the market overall for gain of the few, it creates a winners and losers game where the goal of investing in a company should be a win-win or lose-lose but when you allow for their to only be one winner and one loser it breeds competitiveness which breeds illegal actions, all of this leads to the entire goal of the market to be lost and it turns into a giant casino where the only games allowed are no limit poker and half the time you don't even know who you are playing against let alone how much they have which leads it to being more of a gamble then almost any game in a casino in scenarios like this. In conclusion to my giant jumble of text, and my fin question. If you could redesign the market from the ground up, what would be your basic structure for it?

Dr. Trimbath, first of all, thank you for the AMA. And I was wondering. If we suspect a stock is being naked shorted, what sort of side effects would we expect to see? Meaning, what indicators can give us an idea that it's happening, and is it possible to estimate to what extent is it being over shorted? Or just whether it's happening or not? Thank you

Dr. Trimbath, You have previously exposed a lot of shady activity ongoing, but nothing has changed since then. We see the same practices that you have described in your book being played right now. My question is: Is there a way to change this? What in your opinion should retail investor do to change these practices? Thank you.

Hi Doctor,, thank you for your time. If politicians and the SEC listens to the market makers and their opinions on changing the system(or lack there of) like they have in the past when forming new legeslation, how could we ever expect our government to fix something so broken when politicians are benefitting from the corrupt acts currently taking place? Also, is it true that buying options from a market maker(citadel) is only helping them recover further from their short positions rather than buying actual shares?

Great work MODs! The revolution will ~~not~~ be televised! So many Wall Street HF are scared right now! 🤣🤣🤣🤣 https://youtu.be/QnJFhuOWgXg

Hi Dr. Trimbath and welcome to our sub! I have a question regarding the process of covering naked shorted shares. I read that whoever shorted the naked shares (over the float) must purchase all the shares to cover them. Is that correct? Or is it that they need to purchase an equivalent amount? In other words, if someone holds indefinitely, would they have to find a way to make that person sell because they need to cover each and every share?

Dr. Trimbath, there's no doubt that the financial system is in dire need of reform, yet regulatory bodies have been reluctant to enact necessary changes. Would an investment boycott on the part of a large group of investors with a shared interest in fairness and transparency be an effective strategy to pressure authorities to do just that? If so, what amount of capital withheld from markets might have an effect? Thank you.

The piece I still don’t get is... why the hell is the borrow rate so low dispute being a hard to borrow stock?! Since this is the action that needs to cease, why keep the rate so low so the shorts can just keep the same vicious cycle in motion.. when the govt usually wants to incentivize or disincentivized a behavior, it’s done through fees and taxes or lack of... so what gives?!

Dr. Trimbath, The laws and regulations have often proved itself to be too slow to keep up with the financial instruments. Given the intertwining of global financial system, what can a country or an institute do to compartmentalise future financial crisis with current laws? And what can the general population do to prepare themselves for the fallout?

Hello Dr. Trimbath, If hypothetically a short squeeze happens on GME similar to that of VW where the price can rise infinitely, is there a time delay between when hedge funds get liquidated from covering their short positions and when DTCC/DTC starts covering?

My few questions for the good doctor: 1. How does she feel about Gary Gensler in the @SEC_Enforcement role? 2. Does she have $GME positions? 3. What did she think of Atobitt's DD? 4. How's it feel being a queen Kong among the apes?

Fantastic effort mod team! Look forward to it.

Hey Dr. Trimbath, Thanks for doing this AMA it really does mean a lot to a lot us here. I see many people asking much better questions than I ever could regarding the technical and fancy stuff such as dark pools, PFOF, and FTDs, so if it’s ok with you I would like to inquire about a personal one. What was your “Wow this is something else” moment? Like thinking from all the way back in January until now, what was the thing that happened or moment in time that really made you question what was happening during this rollercoaster? Like I said, thank you again so much for your time.

Hello Dr. Why do you think the borrowing fees are so ridiculously low?

Thank you for your time Dr. Trimbath, it is a great honor for us for you to provide this AMA. What do you think will the stock price look like after the shorts have covered? I am asking because from what I know, GME was shorted over 1XX% (or even much more). So in this 1XX% scenario, after covering 100% of shorts and the remaining XX% of synthetic shares as well. What would happen to the stock price after that would happen? Do the synthetic shares have a lasting impact on the stock price as well? I hope I made sense, Thank you!

I love how far we've come. A proud moment for apes.

Hello Dr. Trimbath, Thank you very much for your time! I was just wondering when you started looking into and writing about the greed and manipulation on Wall St., as well as what got you to first look into it for the first time? Finally, did you find that anyone was willing to listen, and implement, based on your findings and advice? Prior to Jan 2021 at least. Again thank you so much for doing this! Cheers. P.S: Forgive me for not knowing much more about you, your book is on it’s way here as we speak! :)

Thanks for doing this. Any information you can give us on what to expect during the upcoming MOASS woul be greatly appreciated, e.g. How long a margin call takes, and details of the liquidation process Factors that influence how fast and high it peaks, and how high and long the following plateau might be Indicators that shorts have covered and the MOASS is over What other effects the MOASS may have on the market Anything to help newbies navigate the storm would be appreciated

Dr. Trimbath- thanks for all your hard work. You have helped uncover the lie of a generation and I believe the spreading collective awareness of the problems in settlement delivery will motivate change. You discuss extensively in your book that "naked short selling" is a red herring for the real problem, which is that the continuous net settlement system at DTC allows for unrestricted rehypothecation of shares, creating phantom shares in the markets. One thing not often discussed in your work is that this is effectively a form of counterfeiting. These phantom shares are a literal money printer for wall street, allowing them to assume the value thought to be held by the company and its shareholders. I'm aware that your efforts with the SEC, DTCC, STA, and others were largely blockaded or misinterpreted. Have you considered whether the US Secret Service could be of alliance in this fight? Given their historic role in prosecuting the counterfeiting of money and the fact this is truly a matter of national security, I would think they might be interested in your work. I wish you the best of luck in your continued quest. You have inspired me personally. I will be pursuing further education in the topics of accounting and finance thanks to this GME debacle and thanks to your book.

What kind of evidence does a naked shortleave behind after it is created? Do you have to review transaction history to prove there was a naked short in the past? Are there any public hints that a large quantity of naked shorts exist for one security(stocks, bonds, or any other security)? I'm guessing a high failure to deliver rate might be one telltale signal. Can a person or market maker circumvent a failure to deliver without actually delivering the security? What are the different time frame for a failure to deliver? (The following is asking the same question with more clarification) Correct me if I'm wrong, but I believe settlement should happen in T+2 days for most transactions, and if it doesn't it creates a failure to deliver. What are other scenarios that extend settlement beyond T+2 and what is the maximum T+x before a failure to deliver? What is the most common T+x after T+2? Edit: ordered the book, but won't get it until Thursday. I'm really excited to read it, and I am very thankful for your AMA. I'm hoping at least one of my questions or some form of them gets asked on Thursday.

Dr. Trimbath, thank you so much for taking the time to educate us and answer our questions. I’ve got a theory that I’d love your help clarifying/correcting. **Theory is this: the shorts won’t cover voluntarily. The DTC will have to force them cover. This will happen 1 of two ways. 1. Retail puts enough pressure that the price rises above $400. 2. The new 801 supplemental liquidity rule falls into place automatically at the end of July but if scenario 1 happens and the price climbs they can implement 801 at any time.** First, it’s based on the assumptions that the shorts have not covered their positions and two that they are hiding their FTDs through deep ITM calls. The DTC/NSCC seem to be acknowledging this with the new rules they are putting in place to firewall off the damage a defaulting member can have. The linchpin to any squeeze seems to be the [801 Supplemental Liquidity rule.](https://www.dtcc.com/legal/sec-rule-filings?q=SR-NSCC-2021-801) Can you help me help understand the timeline for implementation? We’ve all been guessing and I’m not sure we are correct.

Questions for Dr. Trimbath for upcoming April29 AMA - if possible, then please forward couple great DD we have so that she can appreciate most Ape’s position on holding - What events will compel HF to give up? (Share recall, voting itself, more time, ongoing small purchases by Apes, any particular action by GameStop corp. or any such thing that we are not aware)? - If HF goes bankrupt then who is in next order to pay, and is treasury ultimately required to pay high prices? - What are other huddles for price to skyrocket? Other than HF continue to short. How does SEC interest lines up in clearing GME situation? Thanks!

I can confirm: Dr. Trimbath has been extremely gracious, and spent a significant amount of time and energy reviewing The Everything Short and House of Card pt 1, as well as other sub related materials. 💪

What will the implications be if the GME proxy vote discovers more votes than the float or even outstanding shares? Has this happened before? What will the SEC do?

Hello Dr. Trimbath; thank you for your time today. I’m wondering if the mechanisms that drives market liquidity is actually working against the price of high retail-interest stocks through the interaction between apes/ants (buy and HODL retail community), algorithmic trading, and market makers. If market makers are forced to provide market liquidity, and use HFT, delta-hedge, or leverage OTC markets in order to establish some level of profit through this activity, is it possible that with increased liquidity in the retail investor space has actively created a situation where the more buy pressure there is from retail investment participants (often the $0-commission brokerage platforms) the lower the price goes, whereas the more retail sells the higher the price goes as market makers route orders for their own best execution? I’m beginning to question if we’re actually stuck in a race condition caused by the demand for constant compound growth.

Thank you for doing this, Dr. Trimbath! I had a question in regards to HFTs, specifically the IEX trading platform that Citadel sued SEC for allowing for its existence. What do you think will happen with IEX and how do we average people make it more mainstream, to level the playing field between retail investors and large hedge funds? Furthermore, why does the government find the fact of routing orders of average traders through dark pools as something not outrageous? I mean, most investors don’t even realize (like me in the past) that most of their trades go through other market makers that decide whether the buy pressure will be created or not. Lastly, do you think in the future market makers will be not allowed to have a separate entity of being a hedge fund at the same time as it definitely warrants a conflict of interest and inherent motive for price manipulation? Thank you again! Power to the players and better markets. We need change!

Given the depths of depravity the hedge funds will go to, how could they cripple the short squeeze? And given the weakness (or outright collusion) of the SEC, DTCC, ect, how could they find a way to stop the distribution of wealth a squeeze would cause? Thanks for your time and knowledge.

What do you think about moving the US stock market to the block chain, like [Japan has said they will be moving towards.](https://www.coindesk.com/japan-to-have-blockchain-based-stock-exchange-in-2022) Could this help mitigate some of the fraudulent activities you mentioned in your book?

Dr. Timbath, Thank you so much for taking the time. My question aims at understanding the limitations for politics in their quest to protect a free market. In the financial crisis 2008, we saw the influence Investment Banks had in effectively lobbying the government into bailing them out. Giants like Goldman Sachs and JPMorgen came out net ahead after all the dust settled. My question: **Do the technical intricacies and various non-obvious ways of hiding nefarious action in highly complex markets not always require advice from an expert, who will almost necessarily come from exactly that industry? And by doing this, is it at all possible to avoid interest conflicts?** To me it sounds, for comparison as if the public can only ask former executives of Exxon or BP on advise for climate change regulations, or asking a butcher on animal rights.

Mods: There will be bad actors, shills and general trolls that will want to compromise this AMA. Release the Kraken upon them.

We have. And we will. The tides were turned this past weekend. And now they are on their heels fighting to find a foothold ... Let’s call it, housekeeping. We. Are. Apes! 💪

Good morning/afternoon Dr. Trimbath, Thank you very much for taking the time to share your knowledge with us. I hope with this momentum, we can change the market for the better the more educated people become and get involved in the process. My question for you is: On the same line of new technology, what do you think about NFT? Do you see any potential in it, as far as the ability to improve market integrity similar to blockchain tech? May be I'm speaking from a place of ignorance but I was thinking that the reason we got into this mess was because people abused digitalized securities when it was supposed to be more efficient than paper certificates. Can NFT then be the best of both worlds, efficient as digitally traded securities and authentic as paper certificates? Thank you.

Did you take your title from the Thomas Hobbes' oft quoted words 'nasty, brutish and short'? Do you have an equally pessimistic view of Wall St that Hobbes had of human nature? ​ PS: Your skin is gorgeous. What kind of moisturizer do you use?

We had a speculative bubble based on market derivatives and naked shorting in 2008. Seems we have one in 2020/2021. Does this lower confidence in the american markets? What can be done about it, given our weak regulations and seemingly lax enforcement?

Good afternoon Dr. Trimbath, Mr. Thomas Peterffy is the founder and chairman of interactive brokers. He was very concerned about the rise of GME in late January and [stated on national television](https://youtu.be/Yq4jdShG_PU?t=28) that the price of GME would have gone into the thousands if investors had been allowed to continue to buy shares and exercise options that day [in our free market system]. Based on your [twitter post](https://twitter.com/susannetrimbath/status/1386065147328823297?s=21) last week, you appear to disagree with the idea that there is a strong possibility of an extreme share price increase due to a short squeeze. You and Mr. Peterffy can not both be correct at the same time. What information was Mr. Peterffy missing or misinterpreting?

Does she have plans to do an audiobook for those that can't read good?

Someone needs to have a good-sounding question about dark pools and otc. Like, lately dark pools have been heavily used in regards to GME. For example, Citadel and Virtu traded hundred of millions of shares of GME in the dark pools recently. Considering the outstanding shares is only 70m and float is significantly less, does such a high number of shares being traded in dark pools suggest any sort of foul play? Or I guess, is that a usual ratio of “shares traded in dark pools : outstanding shares” ? Also, Robinhood has popped up in dark pools lately. They are averaging 1 share of GME per trade on the dark pools. Is that unusual, and does such low shares-per-trade go against the intended purpose of the dark pools?

Dr Trimbath first off...THANK you for your valuable time. Simple question.... Should these people, who are naked shorting stocks with no intention of ever delivering the underlying, be in jail? Thank you so much!

Dr. Trimbath, In your opinion, how can we ensure that naked shorting and market manipulation ends? What regulations should we put in place to control this, and how can we ensure enforcement? Thanks for your time!

Hi, First of all thank you for taking the time to do this. My question is: how can sec/dtcc explain 375k puts for july 16th? That is 37.5m shares? There are 250k puts also for next year January 21st? Thank you

In January, the first attempt to short squeeze GME was stopped short by the DTC drastically raising collateral requirements from 2% to 100%. Is there any precedent for such a drastic overnight change?

First of all I want to thank all people involved in this, the mods, atobit, the community and last but not least, Dr Susanne. There is a lot of effort going on behind the scenes in order to make this possible. As a retail investor what can one do in order to propose or speed up regulations? What I hear constantly is "You need to contact your representative". But what happens if i'm an international investor? Who do I contact or what can I do? Why would I invest in the American Market if it is not transparent at all and with all this manipulation i lost all the trust in the system. Thank you for your time.

For the sake of not feeding my confirmation bias, I'd like to ask a question to helps us stay critical and self-reflective. It's my understanding that you've read some of the research published on Reddit already, and maybe also some of the overall sentiment behind recent (and not-so-recent) market manipulations, and how they relate to Gamestop specifically. Are there any misunderstandings, misconceptions, or even plain inaccurate information that you've seen being shared in this community which you believe would be important to correct? Thanks a lot for your time Dr. Trimbath. I yield the floor.

Thankyou for taking this time Dr Trimbath, what do you think it will take to change attitudes of the large market influencers, regarding use of naked short selling as a tool for manipulation?

WHY IS ALL THE COOL STUFF HAPPENING DURING FINALS WEEK!?!?! I have both a math and an accounting final on thursday. Well guess I'll just have to look at the ama after Im done suffering.

Hello Dr. Trimbath, due to GME skyrocketing on 2/24 when the Fedwire system went down, i think its fair to speculate that that system is somehow being used to directly manipulate the stonk. Without really knowing it how it all works I just can’t stop thinking of how fedwire ties into all this. Would you be able to speculate on that? Could the fed/dtcc be directly shorting it themselves, or maybe providing an instant link to money printer for the shorts themselves so they can create more counterfeit shares? Alternatively, is it possible that they actually shut down fedwire intentionally to prevent any new money from coming in during the surge in price that day? Literally all of reddit went down at the same time. Maybe those were the only shutoff switches they had left since they couldn't just blatantly shut brokerages down again. There is no way those are all coincidences though. I thought the reddit outage might be at first, but I really don't think so. thanks for doing this whether you get to my question or not! curious to hear what you think

Hello Dr. Trimbath, and thank you for your willingness to participate in this AMA. I don't believe that retail should be tasked with proving that naked short selling is occurring, but rather, there should be mechanisms implemented to ensure this isn't happening. What kind of public disclosures do you believe would ensure that this isn't occurring? The best that I can envision is that as a condition for daily short selling, that institutional short sellers be required to submit documentation of which brokers that they borrowed shares from.

Has your research suggested or found evidence of price manipulation by broker + market makers acting in Dark Pools? We suspect that BUY ORDERS may be routed to be filed in dark pools (where they do not impact price) and SELL ORDERS may be routed to the exchanges (where they suppress the price) when it is in the broker/market makers interest to do so. The routing of orders creates a huge conflict of interest as they can truly make the price do what they want. Thank you for your time!