Painting the tape is a form of market manipulation whereby market players attempt to influence the price of a security by buying and selling it among themselves to create the appearance of substantial trading activity. The goal of painting the tape is to create the illusion of an increased interest in a stock to trick investors into buying shares, which would drive the price higher.
In some cases the tape may be painted in order to manipulate the price downward or hold an artificial price.
"The print came from a short-seller who was down on their position. They were trying to paint the tape. What do we mean by painting the tape? Some short-seller was trapped.
By painting the tape, the short-seller tried to make it seem like there was some panic. A lot of newbies got confused when they saw the dump. They thought they needed to get out."
Painting the tape is an illegal activity and prohibited by the SEC because it creates an artificial price. It may be hard to prove Tape Painting as it may resemble Scalping which is a legal trade wherein the trader buys and sells (or vice versa) within a short time window on incremental changes to the stock (we have seen this in $0.20 to $0.25 increments). Scalping in large quantities of shares however boxes the price and momentum of a stock for that time period. This will shake out Retail Investors who do not have conviction in their position.
It depends... as a tax avoidance mechanism it is illegal. However, if it is done as a naked short or a smaller position short then it is not illegal... but in our opinion it is not couth.
Another method of a short attack is to short the stock and drive the price down to shake out week conviction investors and stop losses. This allows the "temporary bears" to make money on the short sell and then purchase shares at the new lower cost basis. They "shake the stock price" and then "rake up" the lower priced shares.
HOFV, DLPN, CTRM, ZKIN
It is hard to say for certain. The internet has given #ShortCabal to identify these investors/funds.
Some have speculated that Sabby Management LLC may be one of the offending parties. #CancelSabby
Sabby Management is based out of Upper Saddle River. Sabby Management is a hedge fund with 2 clients and discretionary assets under management (AUM) of $205,866,318 (Form ADV from 2020-10-07). Their last reported 13F filing for Q4 2020 included $521,693,000 in managed 13F securities and a top 10 holdings concentration of 68.85%. Sabby Management's largest holding is Biogen Inc with shares held of 2,762. (https://whalewisdom.com/filer/sabby-management-llc)
Watch this Video where an investor in Clean Spark mentions his concern for Sabby Management:
Sabby Management has been labeled a "Vulture Fund" for it's tendency to invest in distressed assets. https://utopiacap.com/2020/03/25/sabby-management/
A Well Known Hedge Fund for Shorting Stocks:
Notorious for Shorting Their Own Investments:
A Cancer Of the Stock Market:
Bullish Until they Showed Up:
Joined the Fight:
What does this mean for us and our investment... not much really.. Hold Long... and Stay Strong... It just means that if you are bullish on a stock long term it will probably follow the current trend of gradually increases versus taking off like a rocket ship to the moon.. that is unless enough retail investors share the same bullish sentiment and buy and hold strong.
Sign the petition for more disclosure regarding Short Sales http://chng.it/cBJWXSzXZX
An older video but still relevant.
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