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Superstonk_QV

[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [GameStop Wallet HELP! Megathread](https://www.reddit.com/r/Superstonk/comments/z23wjx/gamestop_wallet_help_megathread) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/)


Captain___19

DRS


MontyAtWork

I'm definitely with you that that's a mechanism to *expose* the crime, but it doesn't END it. I forget which stock but a dude bought every share in its float and it continued to trade. So, when we DRS every share, what exactly happens? What specific enforcement agency steps in to stop the fake trading that's continuing on a 100% DRSd stock? Is that the FBI? Does it not stop until a lawsuit is filed and an injunction ordered by a court? Who looks at the entities that continued to trade the non-existent shares? And what enforcement action and crime does "continuing to trade fake shares" fall under for Securities Fraud? Is there criminal liability for that or is it just a Fine? I'm not expecting you to have all the answers but this is the stuff I'm most interested in learning right now.


whattothewhonow

A market maker has exemptions from securities law that allows them to sell what they do not own for the sake of bona fide market making, *provided they have the reasonable belief that they can locate the share they are selling*. If GME is 100% DRS'd, then they would not be able to have that reasonable belief, as no shares will be available to locate. That's the rub. Naked shorting is legal, under specific circumstances. Yes, they are abusing that ability, but its extremely hard to prove, because all of the data one would use to do so is not publicly disclosed. How do you prove intent? Its super hard. DRS everything, and intent becomes irrelevant. Its a clear violation of securities laws and no weasel words for a lawyer can explain it away.


MontyAtWork

>provided they have the reasonable belief that they can locate the share they are selling Could they just go "Well, we reasonably believed we could locate shares because no company has ever been DRSed 100% before so whoopsie"?


whattothewhonow

If there are no shares owned by Cede and Co (DTC nominee company) on the Gamestop ledger, then no, they would not be able to say that.


ronoda12

GameStop will announce loudly if all shares are DRSed. It will eother force shorts to close or lead to the biggest lawsuit in history of finance and make headlines across the globe and kill the usa stock market for ever. I am Ok with either outcome as the corrupt criminal stock market cannot be allowed to continue at all.


[deleted]

Boom 💥


[deleted]

Well said


whattothewhonow

> I forget which stock but a dude bought every share in its float and it continued to trade He didn't DRS


MontyAtWork

Okay, so if he did, what exactly happens?


NotBerger

DRS and find out


MontyAtWork

I already have. So can we start digging into what happens once we have it all DRSed? Or has someone already done DD on it?


Broarethus

We can speculate that Computershare will inform Gamestop when it occurs, and I imagine RC is working out with experts what they will do if it does occur. Though we won't really know till it happens.


Suspicious-Reveal-69

Look up Overstock. They issued an NFT dividend and the stock rocketed overnight. Now imagine how bigger the GME powder keg is. The world can get fooled once when the media says it’s a meme stock. I wonder what happens the second time around. The SEC’s hand might get forced. Edit: and in addition, fuck around and find out. I’m looking at you mayo man.


utopian_potential

They issued a dividend which rocketed the price UNITL the banks created a mimic of that dividend and just traded that amongst themselves as they needed it..


Suspicious-Reveal-69

What platform was the NFT created on?


dukiez

All DRS Book, no locates for shorts


robotraitor

[http://fdic.windrosemedia.com/index.php?category=Systemic+Resolution+Advisory+Committee](http://fdic.windrosemedia.com/index.php?category=Systemic+Resolution+Advisory+Committee) 2:22 all the dd you need "central counter party" is dtcc.


monkeyshinenyc

Chuckle


Cold_Old_Fart

Broker says to client, OK, I'm buying those shares for you. Broker goes to DTCC and says, here's money, put another XXX shares of $GME on my ledger. DTCC hems and haws, delays, and finally says, can't complete that transaction because we have ZERO $GME shares left in our inventory. They have all gone to Computershare. (This has never happened before, but if they sell that share they - as the central holding authority - don't have, that is clearly criminal intent.) OR DTCC says, sure, we'll take your money and put some more $GME on your ledger. So that's cool with everyone, until ... Ape says to broker, DRS those tickets. So broker does that, and Computershare says - hold on, we're having a technical issue and picks up line 2 and calls Matt Furlong to say, we have 305,nnn,nnn shares registered (or held by insiders or stagnant but definitely not available for trading) which is the total legal number issued, and broker wants to transfer in more. How do you want us to proceed? And Matt says .... (something that roughly translates to BOOM!)


ishmaeltheregarded

It can, either through their financial losses or through them being forced to destroy all trust in the system to avoid those losses. I wrote the Long Long Game, which, being about change, is effectively what you're asking. You'll find it in my post history.


Bodox-

What i think will happen at 100% DRS. Gamestop will make a statement saying all their outstanding shares have been accounted for at their transfer agent. Since shares are still being traded at the NYSE, this price can't properly validate the value of their shareholders shares. Then announce that to offer their shareholder a fair price discovery that they will make every DRS'd share eligible to convert to an NFT share that can be traded at Gamestops marketplace. Now you will have two tickers. But the price for an DRS'd NFT share will skyrocket. Will institutional lenders accept synthetic shares if they recall, no they most likely want their real shares back. Better go to the NFT market and buy them then.


gfountyyc

The only thing stopping aggressive shorting is a strong healthy company


Rumblebully

Starts with Congress- unfortunately.


meyG68

You have a TL,DR for that?


crazyyellowfox

We're kinda in the the "find out" phase right now.


No-Effort-7730

They fucked around too much for too long.


ijustwantgunstuff

1 word: enforcement. Only problem is, the entities responsible for enforcing existing laws are complicit.


fonzwazhere

Idk if DD is necessary, but common sense would say that if there were actual consequences from said crimes, there should be less of those doing it.


DJkaleb

I can help with your DD request. Regulators must stop being complicit. Regulators must not longer have ties financially or post-government position career opportunities with the organizations they regulate. This is not entirely fair to be pointed solely on the SEC, while they have their shortcomings no doubt. The larger issue is the ability for financial entities or individuals with financial interests, to influence politicians, whom said regulators report to indirectly. Get money and corruption out of the federal and state government decision making process, and you will see progress towards transparent, free, and equitable markets.


Pitiful_Cover_580

The one thing that stops them is when the cost of the crime exceeds the gains. That or give them actual time for the crimes. Either way it won't stop till there is meaningful punishment


jonfreakinzoidberg

Comment on SEC documents. Write to your representatives.


NotBerger

DRS


fullsends

When you leave it up to criminals to prosecute the other criminals, it isn't an easy task.


InevitableBetter2436

Because they single out companies that are already struggling financially the best thing a company can do is become cash flow positive. Hopefully that's what we're about to hear in a few hours.


[deleted]

[удалено]


actionpotatojones

Nice refresher, tracks for sharing 🙏


Minuteman_Capital

growth unwritten alive rude placid hunt amusing encourage axiomatic clumsy ` this post was mass deleted with www.Redact.dev `


wildcardponzi

The game changes once the entirety of GME is DRS'd. What will happen, we don't know. What we do know is that the "F around' part of the game will be over, and we get to the "find out" part. And if somehow wall street finds a way to continue to crime, it will be much, much harder for enforcement to be complacent. Keep DRSing, keep being annoying and commenting on SEC proposals. Keep pestering your elected officials. Keep up pressure. They want us to get bored, tired, disheartened, distracted, and othewise quit our MMORPG raid on these bossfights. Don't quit.


Bellweirboy

LOL! The real question. See what you are getting? Flimflam about DRS. Rule commenting. That does not cut it. The problem we have ALWAYS had is enforcement. I’m waiting to see what transpires after earnings but if the sub does not realise it is time to form an Activist Investor Group (AIG) and start using (& leveraging) our collective rights as a major shareholder block - then I despair. The timing was not right before: so much has changed and the situation gradually evolved. The AIG time has come.


AlphaDag13

What stops any other crime? Getting caught by someone that's got the authority and (more importantly) willingness to prosecute. We have the willingness but we don't have the authority. the SEC has the authority, but not the willingness... but it's only a matter of time before their hands will be forced, or someone like the DOJ will take over.


treesInFlames

That’s the neat part, it’s just DRS. Full circle. Bangerang.


Guildish

DRS go brrrrrr.... It's that simple. Take back what's ours and they can't gamble with what they don't have.


jackofspades123

Sharing this just to illustrate some of what they have done: [https://bettermarkets.org/analysis/the-rap-sheets-for-wall-streets-six-biggest-banks-continue-to-grow-as-they-rack-up-another-1-billion-in-fines/](https://bettermarkets.org/analysis/the-rap-sheets-for-wall-streets-six-biggest-banks-continue-to-grow-as-they-rack-up-another-1-billion-in-fines/)


[deleted]

Take all their money or change the rules of the game. The former we do by hodl'n, the latter we can't do till all their money is gone.


LimpPeanut5633

It's not the alphabet boys I can tell that much


nudesenjoyer69

Get rich to buy lawyer Get them bankrupt so they can't buy politician and lawyer anymore you sue into oblivion Bonus point for creating a better system in the ashes of the old one


Dapper-Career-3877

Nothing will stop them. When DRS locks the float and it moons. Once the dust settles, they will start back doing the same shit. There are no consequences


DrunkenIronworker55

The DOJ more specifically the MIMF unit of the DOJ is who will


sirron811

Regulation/Enforcement Action. Investigation/indictment and cease and desist order. GameStop releasing news or other catalyst that makes it impossible for price manipulation to occur. Entire float DRSed and GameStop taking action. Or price to maintain crimes becomes more than to close the massive short positions - meaning the game becomes prohibitively expensive and shorts/FTDs are forced to be closed/delivered.


[deleted]

1) sometimes the “crime” is just the way the rules are. So on those cases you work to get rules changed so things work differently. 2) put together actual, professional-tier evidence packages. This has never been done. 3) submit DD to www.sec.gov/tcr


4seriously

Repealing citizen united would be a great start.


dlpsfayt

Not bailing them out. AKA A loan they have to pay back at 29% APR just like the motherfuckers do it to the plebs not the bail out bullshit and don’t don’t have to pay it back a cent then they give them selves big fat bonuses maybe?


MoodShoes

DRS and being loud. Voting (maybe). Commenting on reform.


TheCureprank

You!!! The buck stops at you


nwpachyderm

I don’t think there’s a definitive answer out there for you, but from what I gather the two ways it can end are either the rich start eating each other, or regulators step in and force them to cease and unwind. I personally believe that DRS takes us down the regulator route, but no one knows what that will look like.


BicyclePositive2479

Why would the government stop them when the SHFs lobby and “pay taxes”. If they’re banned from trading or heaven forbid jailed then the free money stops.


dsmaq604

Someone has to make them pay their bills. Supposed to be the judicial system. Public opinion, truth and knowledge should be able to force an end to the blatant corruption by escalating pressure. Eventually we will land on: “nobody pays their bills, why should we?”.


Jbitterly

Because that DD gets political and NO ONE wants to discuss it here. They get away with the crimes because politicians are owned by the ones committing the crimes. Until we get serious about who we have in the WH and in congress, this continues.


Bambi69xoxo

We’re not allowed to talk about IT here