The Blubber

President Donald Trump’s Trump Media & Technology Group (TMTG) sent a letter to the Securities and Exchange Commission (SEC) alerting it to what it described as “suspicious activity,” after U.K.-based hedge fund Qube disclosed a $105 million short position in TMTG’s DJT stock.

Short-Selling Basics
Short-selling involves betting that a company’s stock will decline in value. Investors borrow and sell shares at current prices, hoping to buy them back later at a lower price, pocketing the difference. Because of the potential for market manipulation, short-selling is subject to strict regulations.

TMTG Raises Concerns
In its letter, Trump Media—which operates the Truth Social platform frequently used by Trump—pointed to Qube’s disclosure on April 10 in Germany, revealing a short position of nearly six million DJT shares, amounting to over 2.5% of publicly traded shares.

However, Nasdaq data showed short interest in DJT stock totaled 10.7 million shares as of March 31. According to “third-party sources” cited in the letter, that figure had barely changed by April 16, remaining around 11 million shares.

TMTG said Nasdaq, NYSE Texas, and other exchanges had not been able to confirm the timing of Qube’s trades or whether they occurred at all.

“These factors, especially given the history of unusual trading patterns surrounding DJT stock, could suggest potential illegal naked short selling of DJT shares,” the company wrote.

“We ask that you immediately investigate this suspicious trading activity and report your findings to TMTG and any relevant civil or criminal authorities,” the letter added.

The company criticized what it described as a lack of transparency, stating: “American equities exchanges should be operated with full transparency and maximum efficiency—not as an opaque free-for-all reminiscent of a third-world casino.”

Response and Context
Newsweek reached out to Qube for comment. The firm previously told Reuters that its positions “do not reflect a specific view on the fundamental of the company.” The SEC declined to comment.

Trump currently holds about 53% of Trump Media’s publicly traded shares, which he placed in a revocable trust before beginning his second term in office.