Devin Nunes, CEO of Truth Social, a social media platform created by former President Donald Trump, made headlines at the Conservative Political Action Conference (CPAC) when he spoke out against possible illegal short selling of his company’s shares.
Nunes vowed to defend retail investors from any market manipulation tactics, including naked short selling, which he believes may be causing the decline in Trump Media’s stock price. In a recent speech, President Joe Biden mentioned the stock price of Trump Media, prompting Nunes to question the motives behind it.
In response to these concerns, Nunes stated that he would take necessary actions to protect investors, including legal action or even going to Congress. He also warned Nasdaq CEO about the potential manipulation and cited reports that DJT was the most expensive U.S. stock to short.
However, Citadel Securities, a major player in the financial market named in Nunes’ letter, mocked him for blaming the falling stock price on naked short selling. The founder of Citadel Securities, Ken Griffin, is a GOP donor and Nunes himself was a Republican House representative before taking on the role of CEO of Trump Media.
The Securities and Exchange Commission (SEC) notes that naked short selling is not necessarily a violation of federal securities laws unless it is being used to manipulate the market. Despite this, Nunes remains firm in his belief that actions need to be taken to protect retail investors from potential illegal practices.
As the debate continues, investors and observers are closely watching to see how this conflict between Nunes and Citadel Securities will unfold, and what impact it may have on the future of Truth Social and the financial market as a whole.
