Trump Media And Technology Group has raised concerns about potential market manipulation of its stock on the NASDAQ exchange. In a letter to NASDAQ CEO Adena T. Friedman, Trump Media CEO Devin Nunes expressed worries about traders engaging in “naked short selling,” a practice banned in the United States.

“Naked short selling often entails sophisticated market participants profiting at the expense of retail investors,” Nunes wrote, noting DJT’s inclusion on NASDAQ’s Reg SHO threshold list, indicating irregular trading activity. He identified four financial firms responsible for a significant portion of DJT’s trading volume: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital.

Reports suggest DJT was “by far” the most expensive U.S. stock to short as of April 3, 2024, indicating a concerning trend. Nunes urged NASDAQ to take steps to promote transparency and compliance, including enforcing regulations and preventing the lending of nonexistent shares.

“In light of Nasdaq’s obligation and commitment to protect the interests of retail investors, please advise what steps you can take to foster transparency and compliance,” Nunes wrote, emphasizing the need for NASDAQ’s involvement in addressing the issue.

NASDAQ has yet to publicly respond to Trump Media’s concerns. However, the letter underscores the growing tension surrounding DJT’s trading activity and the broader implications for market integrity. As the controversy unfolds, investors and regulatory authorities will be closely monitoring developments to ensure fairness and transparency in the market.

The accusations made by Trump Media raise significant questions about the integrity of DJT’s trading environment and the potential impact on investors. The involvement of high-profile financial firms in DJT’s trading activities adds complexity to the situation, highlighting the need for swift action from regulatory bodies. In the midst of these allegations, investors are left grappling with uncertainty as they await further clarification from NASDAQ and regulatory authorities.