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darkoz
darkoz
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Thanks for this post from:
OnceDear
August 16th, 2020 at 12:19:07 PM permalink
Advantage Players and casino upper echelon will tell you the most damaging plays (to the casinos) are those conducted by coordinated teams.

It's the same in the stock market.

Here is an analysis of a coordinated short attack against Cytodyn which occurred on June 30th, 2020.

I have culled this information from a number of different sources for this analysis.

The names of the perpetrators are public and in fact they brag about what they did.

It consists of a few primary short Investors and a lot of minions.

Ok here we go:

Primary short Investor #1 has a Twitter following of over 250,000 followers. He promises them he will help them make a profit if they just listen to his advice

To be fair HE DOES ACTUALLY MAKE THEM MONEY!

For a week and a half prior to the attack Primary short Investor #1 tells his Twitter following to invest in Cytodyn at the current price of $4-5.

250,000 people invest into Cytodyn driving the price up. As it rises outside Investors join in driving it up further.

The coordinated attack is planned days in advance. In fact some of the minions could not keep quiet. They bragged about the imminent short attack the day prior laughing at how they were going to steal shares and money from long Investors. This bragging was on public forum message boards dedicated to Cytodyn such as on Yahoo.

The morning of June 30th with the price at $9+ a share, the primary short Investors began a huge volume of short acquiring. This actually drove the price up a bit further until it hit an All Time High of $10.01.

That's when Primary short Investor #2 gave the signal for the short attack to begin. The signal was a false and misleading report posted on his website that the SEC was looking into an investigation of Cytodyn with intent to halt trading.

[IT SHOULD BE POINTED OUT THERE WAS NO INVESTIGATION NOR IS THERE CURRENTLY ONE BY THE SEC TO MY KNOWLEDGE. AND THIS FALSE AND MISLEADING REPORT WAS TAKEN DOWN WITHIN ONE HOUR]

Primary short Investor #1 links to it on his Twitter. 250,000 followers link to the article (this becomes an important part of the plan later).

250,000 minions dump their shares simultaneously!!!

As promised, these minions make money because they brought in at $4-5 and are now selling at $9-10. In this manner the primary short Investor delivers on his promises which of course attract an even bigger Twitter following for future attacks.

The primary short Investors make money because they know in advance there is going to be a massive selloff on the stock they just shorted.

Here is where it gets insidious!

As the price precipitously drops, it triggers automated Stop Losses!

Stop Losses are for the individual Investors protection. Let's say a stock tanks on legitimate bad news and the individual Investor isn't paying attention. Rather than suffer a total loss, you can institute Stop Losses mitigating the ruin.

Just as AP's are known to take anti-AP protective measures and turn them into a positive situation, so too did these short attack Investors.

The Stop Losses were calculated into their plan.

As the first stop loss triggers caused automated selling that contributed to the price drop.

Of course panicked Investors added to that by quickly dumping their shares.

But there were some savvy believers in Cytodyn who quickly rushed to Google if there was any truly bad news causing the runoff.

Searching for "Cytodyn latest news" would of course bring to the top of the search engine list the FAKE SEC investigation which had just been linked to by 250,000 Twitter followers. (Just so you see how well thought out their plan was)

That caused even savvy Investors to dump further.

As the cascading effect took hold the tumbling price blew through even more stop Losses.

Investors with no intention of selling found themselves completely divested of all their Cytodyn stock.

The price was brought down from ATH of $10.01 to $4.65 IN THE SPACE OF 7 MINUTES!!!

In case you can't envision that it looks like this:



ATTACK PART TWO

The primary short Investors, having made millions in the space of just a few minutes were not done.

As true believer Investors suddenly realized this was due to a short attack they began buying stock at the now discounted prices.

Similarly, those Investors who had their stocks stolen by the automated Stop Losses brought back in, as well.

Understanding that would happen the primary short Investors now purchased stock to ride the wave back up.

As you can see from the graph this caused the price to quickly rebound to the $7+ range where the primary Investors sold off.

They had made their profit. The price settled at around $6

The primary short Investors now brag about it because again, they need more Twitter followers for the next attack.









WHAT DO THEY LOOK LIKE?

Here is a video podcast of some of them bragging. SKIP TO THE :08:30 MINUTES MARK FOR THE RELEVANT CONVERSATION ABOUT CYTODYN. THEY EVEN REFER TO IT AS THE "BIG DUMP DAY". WATCH IT FOR ABOUT 5 MINUTES



Finally here is an article that breaks the attack down with more specific info

https://emerginggrowth.com/misleading-headline-on-cydodyn-cydy-triggers-algo-selling/

These short attacks have persisted the last month but wary Investors have taken some counter measures. I will discuss this in a later post.

I hope you guys found this enlightening
Last edited by: darkoz on Aug 16, 2020
For Whom the bus tolls; The bus tolls for thee
gordonm888
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gordonm888
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August 16th, 2020 at 1:44:07 PM permalink
Genuinely interesting. Thanks for posting this.

Definitely makes me want to stay from any investments in speculative stocks.
So many better men, a few of them friends, are dead. And a thousand thousand slimy things live on, and so do I.
UP84
UP84
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August 16th, 2020 at 1:44:43 PM permalink
Quote: darkoz

Advantage Players and casino upper echelon will tell you the most damaging plays (to the casinos) are those conducted by coordinated teams.

It's the same in the stock market...


Oh please, stop the whining! This issue does NOT trade on the NYSE. It trades on the OTCQB, which is only one notch above pink sheets. Short selling is a huge part of the over the counter trading environment, and where a lot of the money is made. Coordinated or uncoordinated rumor mongering is par for the course, and anyone who trades in this space gets exactly what they deserve.

To put it in terms some forum members might appreciate...for a dabbler in stocks, the OTCQB is to the NYSE as what for a craps player a back alley dice game is to the Bellagio.
billryan
billryan
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August 16th, 2020 at 2:07:42 PM permalink
I'm very confused.
Your investor 1 tweeted to buy the stock to his 250,000 followers. Are you suggesting 250,000 people bought this lightly traded stock ?
That would result in a huge spike in volume. A period of time passes, and he tells them to sell, at a very nice profit.
How is this a bad thing?
The difference between fiction and reality is that fiction is supposed to make sense.
AZDuffman
AZDuffman
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August 16th, 2020 at 2:11:06 PM permalink
Hopefully the main players like the food at Club Fed. It would be hard to connect a lurker on a board to convict, but this is risky work.
All animals are equal, but some are more equal than others
billryan
billryan
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August 16th, 2020 at 2:24:24 PM permalink
The average volume on this stock is 7.5 million a day. If 250,000 people bought 1,000 shares each, that would be 250,000,000, right?
Even if they only bought 100, that is 25 million. Can you give us the dates so we can look at the change in volume?
The difference between fiction and reality is that fiction is supposed to make sense.
unJon
unJon
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August 16th, 2020 at 2:25:23 PM permalink
Quote: billryan

The average volume on this stock is 7.5 million a day. If 250,000 people bought 1,000 shares each, that would be 250,000,000, right?
Even if they only bought 100, that is 25 million. Can you give us the dates so we can look at the change in volume?

The OP says it happened on June 30.

ETa: and per Yahoo the volume that day jumped to 56,325,800.
The race is not always to the swift, nor the battle to the strong; but that is the way to bet.
billryan
billryan
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August 16th, 2020 at 2:50:22 PM permalink
Quote: unJon

The OP says it happened on June 30.

ETa: and per Yahoo the volume that day jumped to 56,325,800.



Thanks. I am not finding the daily volume. Where did you find it?
The difference between fiction and reality is that fiction is supposed to make sense.
unJon
unJon
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August 16th, 2020 at 3:14:17 PM permalink
Quote: billryan

Thanks. I am not finding the daily volume. Where did you find it?



https://finance.yahoo.com/quote/CYDY/history/
The race is not always to the swift, nor the battle to the strong; but that is the way to bet.
rsactuary
rsactuary
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August 16th, 2020 at 3:16:22 PM permalink
Quote: unJon

https://finance.yahoo.com/quote/CYDY/history/



And the volume was up in the week prior.

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