Thread Rating:
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
Definitely makes me want to stay from any investments in speculative stocks.
Quote: darkozAdvantage 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.
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?
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.Quote: billryanThe 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?
ETa: and per Yahoo the volume that day jumped to 56,325,800.
Quote: unJonThe 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?
Quote: billryanThanks. I am not finding the daily volume. Where did you find it?
https://finance.yahoo.com/quote/CYDY/history/
Quote: unJonhttps://finance.yahoo.com/quote/CYDY/history/
And the volume was up in the week prior.
So, what news brought it up? What news brought it down?
So the short sellers were sitting there waiting with their news releases and knew to release them exactly when the good news was released that brought the stock up?
If the news that brought the stock up was news worthy and genuine enough, it would have held it up longer than a few minutes. And if the bad news to bring it down was so great, it would have brought it down for much longer than a few minutes. All I gather from your article is that this stock is highly susceptible to hype manipulation, both on the up and down sides. And in any case, it defies logic that the stock could have been pulled down just minutes after going up by a news release such as you describe - it should be obvious to anyone that it dropped that day because too many existing shareholders sold into the rising bids - short sellers do not sell after entering their position, they BUY (to cover), so the actions of short sellers once the stock went up could not have brought it down - it was the actions of SELLERS that brought it down so fast.
Contrarily - a stock like TSLA, all the B.S. the short sellers like Jim Chanos churn doesn't affect the price one bit on a day when the stock jumps +200 points - because TSLA isn't a small float penny stock that has nothing much going for it - its momentum, and sales, are much more tangible, and harder to pull down.
Shorting a stock does nothing to the price of a stock. If it did, then every time a gang of people went short on a stock it would automatically go down - doesn't always happen that way (tell this to the twenty BILLION dollars or so the short sellers of TSLA have lost! 20% of the TSLA float is short, and this fact doesn't seem to be helping them out much).
And it is assumed that anyone who shorts a stock will try to spread bad news about it, the same way that anyone who goes long will try to spread good news about it. The movement of stock up or down has nothing per se to do with people going short or long, just has to do with supply and demand: specifically, the willingness of sellers to lower their asks, which brings a stock down, or the unwillingness of sellers to drop their asks, which brings the price up (so long as there are willing buyers bidding the same asks).
I will agree that Timothy Sykes is a bad actor, but most of what he does is make money at the expense of his minions - who pay him five grand or more a pop to get his feed. He buys ahead of them, and then sells - to his followers - on the way up.
There was no "coordinated short attack" that hurt the stock during those minutes: To quote Cecil B. DeMille's Ten Commandments, "These things were ordered by themselves" - if the stock is so weak that it is susceptible to plummeting just like that over a little news, it isn't a genuine stock to begin with.
So anyway, DarkOz, why didn't you sell your stock when the price doubled? I'll tell you why - because the float on this stock is so small that only a few of the insiders or people right on the edge of the trading curve were able to cash in when it popped, that's why. Would seem to be a classic pump and dump that lasted only minutes. Very weak.
Evidently it is going to take some SERIOUSLY good and everlasting news to take this stock up, because whenever it takes a little pop up, it would seem that the sellers are dumping their shares to get the h. out.
https://microcapdaily.com/cytodyn-inc-otcmktscydy-on-the-comeback-trail-since-citreon-short-attack/126264/
Quote: MDawgBottom line is that this is a pink sheet stock that is susceptible to up and down manipulation. You're the average Joe on the Street who will end up footing the bill if you are not careful.
Which brings us back to what I said in the Leronlimab thread.
The stock price is lower due to short attacks.
Quote: darkozI have more faith in the author of this article than in MDawg or Bill Ryan's assessment.
https://microcapdaily.com/cytodyn-inc-otcmktscydy-on-the-comeback-trail-since-citreon-short-attack/126264/
That article is six weeks old and makes assumptions on events happening in July that didn't happen.
Quote: billryanThat article is six weeks old and makes assumptions on events happening in July that didn't happen.
Bill the article is about the short attack seven weeks ago.
Of course it was written six weeks ago
Quote: MDawgIF SO - then it was higher due to long hype.
No it was higher due to part of the short attack.
Either you didn't bother to read my OP or you just aren't able to understand it
Quote: MDawgMy take - is that you don't understand how the stock market works, period, or how these pink sheets are manipulated up and down, so I suppose I brought that last comment of yours on myself, but rest assured that there is nothing you wrote about that I am not familiar with.
Considering that my entire original post in this thread was about how the stock was manipulated up and then down, your suggestion I don't understand how it works is nonsense
Quote: MDawgYes but you plunked according to you, 45 grand into a pink sheet! your first stock you ever owned, no less.
So, what's your point?
I believe in the company and the product
Quote: darkozSo, what's your point?
I believe in the company and the product
What about the company do you believe in? The CEO with no medical or pharma experience? The undisclosed investors who removed anyone with pharma experience from the board? Was it their failure to file the proper paperwork to the FDA?
Of the thousands of investments, you could have made, what caused you to sink your money into this one?
Quote: billryanWhat about the company do you believe in? The CEO with no medical or pharma experience? The undisclosed investors who removed anyone with pharma experience from the board? Was it their failure to file the proper paperwork to the FDA?
Of the thousands of investments, you could have made, what caused you to sink your money into this one?
Links?
I have no idea what company you are talking about at this time.
Quote: billryanHow much of the first post is simply cut and pasted from company friendly posts on other sites?
What?
Quote: billryanWas it their failure to file the proper paperwork to the FDA?
Just to clarify, that was related to Leronlimab's application related to HIV, not Covid.
Quote: rsactuaryJust to clarify, that was related to Leronlimab's application related to HIV, not Covid.
Also to clarify, the FDA doesn't say ok wrong paperwork, six years of trials now wasted.
What they requested was a correction in the paperwork and gave specifics as to what their needs were (it had to do with packaging of needles for distribution)
Bill is intensely trying to discredit this particular company by ignoring or distorting much information (note that most of my information I try to supply links and videos while Bill just yammers away with no proof whatsoever)
I am starting to wonder if he isn't up to something with darker intent
Quote: rsactuaryJust to clarify, that was related to Leronlimab's application related to HIV, not Covid.
I asked what about the company made him believe in it? Failure to file proper paperwork on any application isn't something that would give me confidence in it.
Quote: darkozwhile Bill just yammers away
That's insulting, isn't it? He has as much right to his opinion as you do - you're the one that opened this thread. I give it to you that you believe genuinely in the company, but now you seem to be responding based on emotion not facts and if you don't know by now, you should know, that that sort of thing persuades no one.