Trump Media warns Nasdaq of suspected market manipulation

Trump Media alerted Nasdaq Inc. on Thursday of suspected illegal short-selling activity that may be considered market manipulation, according to a letter Devin Nunes, the CEO of Trump Media, sent to the chair and CEO of Nasdaq. In the letter, Nunes laid out what he believes could be deemed “naked” short selling of shares of the parent company to former President Donald Trump’s Truth Social. Naked short selling involves someone selling shares they don’t own or have not borrowed. They will often then try to buy shares at a reduced price to cover themselves. This practice is generally illegal. Whereas legitimate short sellers, people who seek to benefit from declines in the value of a company’s shares, borrow the shares before selling. The letter was made public Friday in a filing with the Securities and Exchange Commission.