New York: Trump Media & Technology Group (TMTG), the parent company of Truth Social and majority-owned by U.S. President Donald Trump, has formally requested the U.S. Securities and Exchange Commission (SEC) to investigate recent short-selling activity in its shares.
The move comes after hedge fund Qube Research & Technologies disclosed a short position valued at approximately $105 million in Trump Media, as per a filing with Germany’s federal gazette, Bundesanzeiger, earlier this week.
In a memo submitted to the SEC on Thursday, Trump Media voiced concerns that the short-selling activity could involve “suspicious activity” and requested swift regulatory scrutiny.
“We urge you to immediately investigate this suspicious trading and report your findings back to TMTG and any relevant civil and criminal authorities,” the memo stated.
Short selling is a widely debated investment strategy in which investors bet against a stock’s performance. While legal, it is frequently criticized by company executives, especially when stock prices experience sharp declines. Advocates, however, argue that short sellers have historically helped uncover fraud and corporate mismanagement.
Trump Media’s memo to the SEC also flagged potential evidence of “illegal naked short selling of DJT shares”, a more contentious practice banned in the United States. Naked short-selling refers to the sale of shares that have neither been borrowed nor confirmed as available to borrow — an act that can potentially distort market prices and undermine investor confidence.
The SEC declined to comment on the matter. Trump Media and Qube Research & Technologies did not immediately respond to requests for comment.
Earlier in the week, when asked by Reuters about its position in Trump Media, Qube explained that its investment decisions are based on quantitative models and “do not reflect a specific view on the fundamentals of the company.”
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Responding to questions regarding potential conflicts of interest related to Trump’s ownership of TMTG, the White House reiterated that Trump’s financial interests are held in a trust.
“There are no conflicts of interest,” White House spokesperson Anna Kelly said in an emailed statement.
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This is not the first instance of Trump Media raising alarms over suspected trading irregularities. In April of the previous year, the company filed a notice with Nasdaq alleging “potential market manipulation” of its shares.
As the controversy unfolds, the spotlight is once again on the volatile intersection of finance, politics, and public markets, with Trump Media pressing regulators for transparency and accountability.
