Trump Media & Technology Group (TMTG), the media company behind Truth Social and majority-owned by Donald Trump, has called on the US Securities and Exchange Commission (SEC) to investigate what it alleges may be “suspicious” short selling activity in its stock, according to reports.
In a letter sent to the SEC on Thursday, TMTG cited concerns over a disclosed short position by hedge fund Qube Research & Technologies, which reported a $105m bet against the company in a German regulatory filing earlier in the week. The company urged regulators to examine whether the position involves prohibited naked short selling and to share their findings with both TMTG and relevant authorities.
“We urge you to immediately investigate this suspicious trading and report your findings back to TMTG and any relevant civil and criminal authorities,” the company stated in its memo to the SEC.
While short selling is a legal and commonly used strategy by hedge funds and other market participants, Trump Media claimed there could be “indications of illegal naked short selling,” a banned practice in which shares are shorted without being properly located or borrowed in advance.
Qube, a quant-driven fund with a significant global presence, said in a prior statement that its positions are dictated by systematic models and do not reflect fundamental views on individual companies. Neither Qube nor Trump Media immediately responded to requests for further comment.
The SEC has also declined to comment on the matter.
This isn’t the first time TMTG has raised flags with regulators. In April 2024, the company filed a complaint with the Nasdaq alleging potential market manipulation of its stock.
