CEO Devin Nunes issued a letter to Nasdaq asking for action against naked short-selling activity on DJT stock.
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Trump Media and Technology is trying to make it more difficult for short-sellers who want to bet against its stock, with company CEO Devin Nunes framing recent efforts as a case of market manipulation.
In a letter sent to Nasdaq chief Adena Friedman, Nunes outlined concern about so-called naked short-selling activity on the DJT stock, and asked that listed brokers disclose their net short positions.
"DJT appears on Nasdaq's 'Reg SHOthreshold list,' which is indicative of unlawful trading activity. This is particularly troubling given that 'naked' short selling often entails sophisticated market participants profiting at the expense of retail investors," the letter said, published Friday in an SEC filing.
Naked shorting is a banned form of investing, where the shares being bet against are never secured or borrowed. This can artificially distort market supply and incite volatility.
Nunes' letter comes a day after the company also updated its website FAQ with suggestions on how long-term investors can prevent the shorting of their stock. Options included opting out of security lending programs, and transferring shares into a retirement account.
Since Trump Media's market debut in March, short selling has been a go-to culprit for the heavy losses DJT has since witnessed, at least among the firm's staunchest supporters. On Friday, the stock climbed as high as 10.4%, with Truth Social users celebrating Nunes' commentary.
"Looks like @DevinNunes and his team will go down in history as the hero's who finally beat the naked shorts!" one user wrote on Friday. Trump Media is the platform's parent firm.
However, Friday's high is still about 44% below its peak in March. Shares have plummeted heavily on the firm's disappointing fundamentals, after it disclosed a $58 million revenue loss last year.
For company founder Donald Trump, that's taken a massive toll on his stake, once valued at over $5 billion. Instead, DJT's slide has lost him over $3.3 billion as of Tuesday.
