Trump Media Surges After Warning Nasdaq About Potential Naked Short Selling of Its Stock

Shares of Trump Media & Technology Group ( DJT ) surged over 9% Friday after the parent company of former President Donald Trump’s Truth Social site warned illegal “naked” short selling could be impacting its stock.

CEO Devin Nunez sent a letter to Nasdaq CEO Adena Friedman saying the company wanted to bring to her attention “potential market manipulation of the stock.”

Nunez said that data made available to Trump Media showed “just four market participants have been responsible for over 60% of the extraordinary volume of DJT shares traded.” Nunez said those four were Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.

He cited a report from April 3 that Trump Media & Technology Group’s stock was the most expensive stock to short, which he said meant “that brokers have a significant financial incentive to lend non-existent shares.”

In his letter, Nunez asked Friedman to advise what steps could be taken “to protect the interest of retail investors” by preventing the lending of shares that don’t exist.

In an email to Investopedia, Citadel Securities accused Nunez of blaming naked short selling “for his falling stock price.”

Earlier in the week, Trump Media posted instructions for “long-term shareholders who believe in the Company’s future” on how to prevent the lending of their shares for short selling.

Trump Media & Technology shares closed 9.6% higher Friday at $36.38. They have been on a roller coaster ride since they began trading March 26 , hitting an all-time high the day after. They later reversed course, falling to an all-time low on Tuesday before rallying the last three sessions.