Truth Social owner Trump Media asks Congress to investigate ‘troubling’ market manipulation claims
New York (CNN) — Trump Media & Technology Group is asking Congress to investigate its suspicions that illegal activity is driving down its share price.
Posted — UpdatedIn a letter disclosed on Wednesday, Devin Nunes, the CEO of Truth Social owner Trump Media (DJT), alerted the GOP Chairmen of the House Ways and Means, Judiciary, Financial Services and Oversight Committees to the “urgent matter” of “potential manipulation” of the company’s share price.
“We assess there are strong indications of unlawful manipulation of DJT stock,” Nunes wrote in the letter.
Nunes, himself a former Republican congressman from California, pointed to how Trump Media has been among the most expensive stocks to borrow. Traders who wish to short a stock, or bet the value will go down, must borrow shares elsewhere first.
Nunes suggested there are signs of “naked” short selling, which involves someone selling shares they don’t own or have not borrowed.
“This is particularly troubling given that ‘naked’ short selling often entails sophisticated market participants profiting at the expense of retail investors,” the Trump Media CEO wrote.
However, experts told CNN they are skeptical there is clear evidence of market manipulation and said there are more obvious explanations for why some traders are betting against Trump Media.
“The reason that short sellers want to short the stock is because the stock is overvalued,” said Jay Ritter, a finance professor at the University of Florida.
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