The Final Battle
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| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/thomas798354](https://www.reddit.com/user/thomas798354/) | [Reddit](https://www.reddit.com/r/DDintoGME/comments/oar709/the_final_battle/) | 

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[𝗦𝗽𝗲𝗰𝘂𝗹𝗮𝘁𝗶𝗼𝗻](https://www.reddit.com/r/DDintoGME/search?q=flair_name%3A%22%F0%9D%97%A6%F0%9D%97%BD%F0%9D%97%B2%F0%9D%97%B0%F0%9D%98%82%F0%9D%97%B9%F0%9D%97%AE%F0%9D%98%81%F0%9D%97%B6%F0%9D%97%BC%F0%9D%97%BB%22&restrict_sr=1)

Apes as I see my fellow comrades disappointed on the battlefield I began to go back to my drawing board and think tactfully as how I would wargame from Citadel's point of view. I realize a lot of you are mad about T+21 and I must really have supporting documents this time so I will proceed slowly with lots of quotes and rule references, I invite anyone to politely cite their opinion.

TLDR; Citadel used the OTM options locates one last time to the extreme before 005 came into effect to try and buy back shares at the lowest price possible. Hold the Stock, don't fall for the other baited plays coming up, and be patient apes. Short squeezes will be a thing of the past after this. 005 will hopefully stop locates in options chains and also prevent a lent shares from being rehypothecated and leant to someone else. We could see the borrow time reduced to a maximum of T+6.

REG SHO 101-

Rule 203: Locate requirement- *Locate Requirement*. Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.[[7]](https://www.sec.gov/investor/pubs/regsho.htm#_ftn7) This "locate" must be made and documented prior to effecting the short sale.

Rule 204: *Close-out Requirement*. Rule 204 requires brokers and dealers that are participants of a registered clearing agency[[8]](https://www.sec.gov/investor/pubs/regsho.htm#_ftn8) to take action to close out failure to deliver positions. Closing out requires the broker or dealer to purchase or borrow securities of like kind and quantity. The participant must close out a failure to deliver for a short sale transaction by no later than the beginning of regular trading hours on the settlement day following the settlement date, referred to as T+4. If a participant has a failure to deliver that the participant can demonstrate on its books and records resulted from a long sale, or that is attributable to bona fide market making activities, the participant must close out the failure to deliver by no later than the beginning of regular trading hours on the third consecutive settlement day following the settlement date, referred to as T+6. If the position is not closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)[[9]](https://www.sec.gov/investor/pubs/regsho.htm#_ftn9) may not effect further short sales in that security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement) until the broker or dealer purchases shares to close out the position and the purchase clears and settles. In addition, Rule 203(b)(3) of Regulation SHO requires that participants of a registered clearing agency must immediately purchase shares to close out failures to deliver in securities with large and persistent failures to deliver, referred to as "threshold securities," if the failures to deliver persist for 13 consecutive settlement days.[[10]](https://www.sec.gov/investor/pubs/regsho.htm#_ftn10) Threshold securities are equity securities[[11]](https://www.sec.gov/investor/pubs/regsho.htm#_ftn11) that have an aggregate fail to deliver position for five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC)); totaling 10,000 shares or more; and equal to at least 0.5% of the issuer's total shares outstanding. As provided in Rule 203 of Regulation SHO, threshold securities are included on a list disseminated by a self-regulatory organization ("SRO"). Although as a result of compliance with Rule 204, generally a participant's fail to deliver positions will not remain for 13 consecutive settlement days, if, for whatever reason, a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in a threshold security for 13 consecutive settlement days, the requirement to close-out such position under Rule 203(b)(3) remains in effect.

Rule 204 Exception: Rule 204 provides an extended period of time to close out certain failures to deliver. Specifically, if a failure to deliver position results from the sale of a security that a person is deemed to own and that such person intends to deliver as soon as all restrictions on delivery have been removed, the firm has up to 35 calendar days following the trade date to close out the failure to deliver position by purchasing securities of like kind and quantity.

Okay lets start with what is happening, since before January the SHF (short Hedge Funds) realized that they couldn't bankrupt GME anymore. Their new goal is to get the price to be as low as possible before they cover due to almost all the Hedge Funds short already being at 49% losses or more. In 2019, before they were going to short GME to death they wanted to profit off of the derivatives market and placed puts on Jan 15th a huge options date that could have been bet on years out. At T+3 we saw a big run up Jan 22 from T+4 opened 42$ closed 65$ running to 96$ before premarket. The next day, T+5 was trash it opened at 96$ and closed at 76.79$ (not special). This was followed with T+6 where the latest date to close was opened at 88.56 and closed at 147.98 after markets running to 354.83. May 21 lead to May 26/27 and June 1/2 T+3, T+6 sometimes the deliveries catch up after market and premarket.

Time to start explaining my little working theory. I am now a hedge fund, come join me in shorting GME (theoretically). So imagine this, we want to short the crap out of GME in a few different ways. Everyday downwards pressure to suppress price, and once a month we want to unload to spike it down. In order to short GME we must first find a broker willing to lend us shares, but this provides us with a problem because we don't own these shares we have to return them in T+3 or T+6. If we provide the locate for these shares meaning we own them or a security that is "like" them then we fall under the exception.

Let me paint a picture for you, June 2 closed high from the T+6 from May. June 4th I was eating a protein bar on a ruck march thinking about how fucked the HF were when I saw SSR for AMC and GME.....Then the SHF borrow shares 3 & 4 June to short and replace them T+3 which was June 8/9 the SSR was because the HF borrowed all the shares possible from the brokers and ETFs. We are hype going into the shareholder meeting, so hype about 350$ no one is questioning why the SHF bought so many OTM options on July 16th. The HF loaded their short cannons with locates for the earnings report meaning they could short shares as much as possible with their locates at close to 85M total shares in JULY-JAN2022 options chain.

"If a failure to deliver position results from the sale of a security that a person is deemed to own and that such person intends to deliver", "the firm has up to 35 calendar days following the trade date to close out the failure to deliver position by purchasing securities of like kind and quantity." Funny how they shorted the crap out of GME June 10th and 35 calendar days is July 15th, the day prior to their options expiring.

Let me show you what this looks like from the round table at citadel securities:

Hey Ken, I can't buy you anymore time over at DTCC. I have to pass 005 but I can make sure we file it June 24 and that it doesn't get sent to the federal register until June 30th. This buys you enough time to trick them with a T+3 borrow and a massive located short sale during a share offering, not to mention their disappointment that the new rules don't work at all. The short will cause apes to lose faith when 30% of the value disappears, and the only risk is that if you cant get the price low enough to cover under 350$ before July 16th. We lose anyways because 005 is in effect and July 16th will have T+3, T+6 buys when those OTM locates expire and cannot be kicked. To make matters worse the ETFs cannot help them anymore, the Russel 1k has even less shares to borrow. This is the last ditch effort to get the price down before they have to cover. Simultaneously they are attacking us with all of these "buy this instead" plays while GME sits idle and loses value, look at the threshold securities list! Half the people hyping it don't even know wtf it means.

Remember the DFV tweet from Ready Player One, sometimes we must go backwards to win the race. Remember the latest cohen tweet with the fart alluding to the south park movie where kenny watches Terrance and Phillip in the movie theater and lights his own fart on fire, then he dies by getting dumped on by a "russell's" salt truck.

[I'm not making this up](https://preview.redd.it/thwgb9sjic871.png?width=926&format=png&auto=webp&s=a33017b3e7998cdb02a1f66fdabda05cce27fca2)

Threshold Securities List- Threshold securities are equity securities[[11]](https://www.sec.gov/investor/pubs/regsho.htm#_ftn11) that have an aggregate fail to deliver position for five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC)); totaling 10,000 shares or more; and equal to at least 0.5% of the issuer's total shares outstanding. Let me show you how easy this is to do with large float stocks for insert example stock...... borrow 500M*.005 shares= 2.5M and then don't return them.

That's it! That's all they have to do borrow less than 1% of the float and not return it.

Edit: Let me explain why I don't think net settlement is a big deal, these bad guys have an unfathomable amount of money. I highly doubt someone that controls 30% of all trading is going to go bankrupt over a single security guys. These little HFs have been going bankrupt, they have. Look at Melvin, archegos, greensill, GFG, the new one out of London. They are feeling the heat, one by one they have been failing. Getting these giant bosses to fail is a completely different story, as much as we want to see these giant ones fall it's most likely not going to happen. They will survive with bailouts, tricks, illegal trading, whatever the reason may be. Make no mistake however this is a financial revolution and we got what we wanted. These rules that are put in place will stop them from doing what they have been doing under REG SHO. Will they take a big hit at the end of the day? Yes, will they all die? No, did we change the way the game is played? Certainly. They paid to take over Reddit nuff said.

Just buy and hold GME. Our time is coming.
