In death by 1000 cuts, SHF just received their 999 cut
======================================================

| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/No1Important_4real](https://www.reddit.com/user/No1Important_4real/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/o0mn0y/in_death_by_1000_cuts_shf_just_received_their_999/) | 

---

[Education 👨‍🏫 | Data 🔢](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Education%20%F0%9F%91%A8%E2%80%8D%F0%9F%8F%AB%20%7C%20Data%20%F0%9F%94%A2%22&restrict_sr=1)

EDIT: Love you apes. Sorry again for the crass language and the tone. It was part frustration, part trying an alternate strategy to reach people. I will try and fix my typos and errors as I find them but this took me like three hours to write and I really need to get some work done.

EDIT 2: I updated the percentages on the numbers chart, as people correctly pointed out the implied increase negated the need for the 100% base. Thank you so much for everyone taking the time to understand. I do want to mention that I'm not saying the MOASS is on a date. I just wanted to get attention drawn to a point of data that, to me at least, seems urgent and critical for apes to see, especially while the price dips. I always reserve the right to be wrong. Thank you all so much for your comments, I appreciate them all and read them as I can.

PREFACE

I am screaming from the rooftops about this to any apes who will listen. The bells are tolling for hedgies and no one is noticing or caring. I've made two other posts trying to draw attention to this and both got downvoted into obscurity or spammed with cries of "Shill!"

I try to make every post respectful, concise, and as clear as possible but that isn't working and this needs to be heard, so I'm going to go crass. Prepare for a meandering, poorly edited, train of though addled wall of text! I'm going to worry less about citing and more about getting this out there. I'll edit in citations later if anyone fucking pays attention and this doesn't get downvoted to hell.

I love all you apes, but the hedgies are bleeding out right in front of us and you dense mother fuckers are busy upvoting cat videos and low effort memes to the front page instead of useful discussion. You aren't all diamond hands, you're diamond skull too. If I need to make a puppet show I will, you're going to understand how important today is.

TOPIC

Today is the settlement date for the short interest reports due to FINRA twice a month. These dates are as important as FTD cycle dates but no one ever fucking pays any attention to them. Every single time these dates come around the price will bump UP by 25% to 35%. What did we see this cycle? A DROP OF 40%!

This is the first time in a year that the price fell for a SI report cycle. It has always risen by as much as 500% during the Jan squeeze or as little as 22% in April while the stock was running flat but it ALWAYS GOES UP!

Pay the fuck attention here. The price goes up when these dates come around, not down. There is a very simple reason why, if you give two shits about it you can read my first DD:

<https://www.reddit.com/r/Superstonk/comments/nztx4l/finra_short_interest_reporting_the_current_price/>

GRADE SCHOOL LEVEL EXPLANATION

I'm going to use an analogy and then a real world example with numbers to try and hold as many people's hands here and explain what's happening.

Let's say you get a small cut and it bleeds a little bit. You're not going to die. You get cut again and again and again and you're still not going to die but every cut makes the bleeding come faster and faster. Eventually so many cuts will accumulate that the bleeding will kill you.

Now imagine you're getting these cuts but don't want anyone to know you're bleeding, so you cover the cuts up with bandages. You're still fucking bleeding, you're still going to die, but at least nobody knows it. People can see you're a little cut, but no one can clearly tell you're fucking hamburger and being held together by duct tape and stubbornness.

Now what happens when you run out of bandages and you get a new cut. That cut is going to show, people are going to see it. Worst, your old bandages need to be changed from time to time. You're now not just fucked, but everyone is going to start realizing you're fucked and they're going to go after your weak ass.

That's the hedge funds right now, they're out of bandages.

These pieces of shit have been creating synthetic shares of GME for months now, since before the Jan squeeze. In Jan they were over 100% short, so what happens when someone buys a share of a stock that has no shares to sell? The price goes up. It goes WAY the fuck up. To counter, the hedge funds have been creating synthetic shares.

There are piles and piles of DD on this topic, please use the DD search button and read some of them if you're lost.

So, let's say it's April 16th. You have synthetically created MILLIONS of shares of GME and apes keep buying. You create more shares every time they want to buy more so that the price doesn't climb. But every time you create shares you have to balance your books. Luckily, the SEC is shit at their jobs and you can fudge 10% or so of the shares you create out of thin air, but there is still just way too many shares getting created day after day.

Then, here comes a settlement date on April 30th. In that time you've synthetically created 20 million shares and fucked the stock price in the process, only letting sell pressure materialize. You even got super sneaky and only marked half the shares you created out of thin air as short. You're still holding your dick and 10 million fucking shares that have to be balanced before your system creates an automated report and sends it to FINRA. Fuck. OK, so you start buying up deep in the money calls and shoving hundreds of thousands of shares into them, but there's only so many of those in a day. Here you are three days before the report is due and you've still got 7 million shares to fucking deal with. No option, you're going to cover 6 million of them, let the stock price concentrate a few percent, and then short the fuck out of it in a couple days. The report you send in, which is completely fucked and not even close to accurate, only shows you have 20% of the stock shorted, because you managed to lie about half of them, shove a quarter of them into options, juggled the rest into the share price for a couple days. April 30th hits and the report fires, you now can start the stupid fucking cycle all over again!

MIDDLE SCHOOL LEVEL

If you're with me so far, then I'm proud of you and you get a star.

The hedgies are trapped in this cycle, it is married to the FTD cycle that everyone focuses on, but both of these cycles feed each other and compound on each other.

Every time a report is due they have to cover whatever amount of shares they can't hide into options. If you want to know more about how hedge funds hide their shit in options, please use the DD button, there are a lot of VERY deep dives into that topic.

Every time there is a settlement date looming, the shorts cover any open excessive shares they haven't yet hidden. Every time. Without exception.

Now, half you retards skimming here read this as 'the shorts have covered'. THE SHORTS HAVE NOT COVERED! They are not closing the hundreds of millions of short positions they have open every settlement cycle, what they are closing is a fraction of the shares they created. Their strategy is to balance their bullshit between "accounting errors" and not marking synthetic shares as being short, shoving shares into options, and covering the remained. They cannot over do any one of the three. If they pump too many shares into options, the next FTD cycle will hit too hard. If they fuck up their report too much, it will cross the line from a fine and end up with jail time. If they cover too much it will send the share price too high. They use ALL THREE!

WHAT HAPPENED

I hope you're still with me, we're almost there....

[![r/Superstonk - In death by 1000 cuts, SHF just received their 999 cut](https://preview.redd.it/g49n3z9peh571.png?width=1866&format=png&auto=webp&s=45312c14e7656455d6791d0e765be717c4eed00e)](https://preview.redd.it/g49n3z9peh571.png?width=1866&format=png&auto=webp&s=45312c14e7656455d6791d0e765be717c4eed00e)

Pretty pictures

[![r/Superstonk - In death by 1000 cuts, SHF just received their 999 cut](https://preview.redd.it/zlu198bxvh571.png?width=308&format=png&auto=webp&s=b1b91ba7bd00b5f164716d4d5390fd666b18dd7b)](https://preview.redd.it/zlu198bxvh571.png?width=308&format=png&auto=webp&s=b1b91ba7bd00b5f164716d4d5390fd666b18dd7b)

Scary numbers!

Here is a chart of settlement dates, the high that resulted from the date, and the low a day or two previous to the high. The highs are always (except for in 2 exceptions) the day BEFORE settlement. For the two exceptions, the high was two days before settlement. The lows occur before the high within a day or two. Lastly is the percent increase.

You can ignore everything the Jan and Feb squeezes, their behavior is not typical for reasons I really shouldn't have to explain. You can see that before settlement the price always goes up. Always.

This settlement cycle, for the first time ever the price went down, it went down 40 god damn percent.

That's not a weird fluke, that's a fucking alarm bell ringing and everyone is ignoring it to watch anchors on CNBC yell at each other.

EXPLANATIONS

There are three possible solutions to why the price went down but only one of them makes any logical sense. Now, deep breath, you have to apply deductive reasoning. I will now attempt to make my case for the three arguments and why only one of them can be true. Hold onto your butts.

ARGUMENT 1: *SHF managed to hide their short positions using their usual tactics, and sell pressure was so high they never needed to cover the shares they typically have to.*

I want to point your attention to everyone's favorite datapoint, OBV:

[![r/Superstonk - In death by 1000 cuts, SHF just received their 999 cut](https://preview.redd.it/evzz891m7h571.png?width=1298&format=png&auto=webp&s=e1385a64ef72920fb447d91a2019252dd8244008)](https://preview.redd.it/evzz891m7h571.png?width=1298&format=png&auto=webp&s=e1385a64ef72920fb447d91a2019252dd8244008)

OBV is not the answer to all questions, but it can show us with a good enough clarity that no one is selling. After April 12 the OBV has only increased. This flat out tells you people are buying and not selling. Notice at the end there, the last few days, that dip is fucking pathetic. Even the paper hand bitches that joined in the last two weeks haven't sold.

So the sell pressure didn't deflate shit, what about options, maybe they just shoved so many god damned shares into options this week...

<https://www.optionsonar.com/unusual-option-activity/GME/latest-trades>

Well, nope, according the optionsonar this week isn't exceptional. No more deep ITM buys then we'd expect to see. So they didn't hide the shares and they didn't cover the shares. This argument is fucked.

ARGUMENT 2: *Hedge funds lie, they're just going to lie on this report.*

This argument is slightly more plausible but still doesn't cover it. I want to emphasis, these dates are married to the FTD cycle. The FTD cycle is the noose around the hedgies necks. The cycle is strangling their stupid asses out. If they could just cheat away their short positions, they'd have been doing that YEARS ago.

What's that I hear you saying over you bowl of cheerios with no milk? "Oh, but they're desperate now and trying desperate measures" They've been desperate since Feb when the dick parked behind them started inching into their asses. They've been doing everything they possibly can since at least Feb with no way out. If it was as simple as lying don't you think they would have tried that by now?

I don't want to tell you jack shit about me, who I am or what I do in the real world, but I do have personal experience on this front, I do know what I'm talking about. The SEC may have their thumbs up their asses but if you fuck the dog too much, they will have no choice but to prosecute you. You can stick a finger or two in, but when you go balls deep there will be consequences.

<https://www.ussc.gov/sites/default/files/pdf/research-and-publications/quick-facts/Securities_Fraud_FY19.pdf>

Fraud, actual fucking fraud, not the stupid ass bullshit people on here like to call fraud, but REAL fucking fraud gets the government wet. USDAs will jump on them, it's a slam dunk easy case, the government gets to collect a bunch of sweet cash from their restitution payments, probation offices get to toss them onto the low risk caseload and check in with them a couple times a year. Everyone on the federal side wins. Again, I don't want to say too much but I know what I'm talking about on this topic, these assholes get prosecuted, they get years of probation and sometimes small stints in prison. Worst of all, you lose your ability to EVER practice finance again. Scarlett letter, they're fucked.

So, they might push the envelope, they might fudge the numbers egregiously, but they wont erase 100 million shares and expect it not to get found.

Reports like those sent the FINRA are created with automated workflows. In order for them to fraudulently mark all of their synthetic shares as long a worker at the bottom of the barrel would have to have gone in and done it. Some programmer, trader, or middle manger would have knowingly put his career, his freedom, his family's security on the line. For what? So his job lasts a couple weeks longer? So his boss will give him a thumbs up? Fucking no, no one is that stupid. No one is going to gamble away their entire life for a couple more weeks at a paycheck or a good performance review.

If it were that simple, if cheating at that level were an option, they would already be doing it.

I'm running in circles here but this is the first time the price dropped from a settlement, not just didn't go up, fucking dropped by 40%. It was shorted to shit. This isn't Ken going in with some whiteout and a pen, there are dozens of people involved with this action and they aren't all going to sacrifice themselves for no god damned reason, especially when they could get a sweet whistleblower reward for reporting it.

ARGUMENT 3: They aren't going to cover.

When you rule out all the other possibilities, what you're left with is the only logical argument. These assholes are unable to or unwilling to cover the shares they need to.

Maybe the number of them is so egregious there is no point.

Maybe the move to the Russell 1000 on the 25th will make the entire exercise pointless.

Maybe there's too much scrutiny on them with the SEC finally investigating.

Who the fuck knows, all I know is, they didn't cover.

They didn't hide them all, they didn't sell them all, they aren't going to willingly go to jail, THEY'RE SURRENDERING whether intentional or not.

When the report gets published on the 25th, it will show all the shares they couldn't fudge or hide. It will show tens of thousands of shares. Not just 20%, it'll be 60% minimum, and it'll be just the tip of the iceberg. That number will only represent a couple weeks of shorting.

Blood in the water, the sharks will circle. This is massive.

Apes need to fucking see this. Everyone is crying over a little price dip while the god damned final blows are being struck.

You may downvote this again, spam accusations of Shill, but I'm not going to stop trying to get this topic to people's attention.

I'm done for now and will go back to a polite demeanor.

To all the apes who took the time to read, thank you!
