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third party shorts
https://www.news.com.au/finance/money/investing/investment-firm-says-massive-short-of-truth-social-stock-before-trump-shooting-was-filed-in-error/news-story/8f9886b3ecf6f1c53d7ad3b737387d2a
Investment firm says massive short of Truth Social stock before Trump shooting was ‘filed in error’
A massive stock trade just before the Trump shooting that sparked frenzied conspiracy theories has now been explained by the firm involved.
The SEC filing which showed that Austin Private Wealth shorted a large number of shares of Trump Media & Technology Group Corp (DJT) was incorrect and we immediately amended it as soon as we learned of the error.
No client of APW holds, or has ever held, a put on DJT in the quantity initially reported. The correct holding amount was 12 contracts, or 1,200 shares — not 12 million shares, as was filed in error. In submitting the required report for the second quarter of 2024, a multiplier was applied by a third-party vendor that increased the number of the shares by a multiple of 10,000 for all options contracts (not just DJT). We did not catch the error before approving the filing.
We filed the report on July 12 to reflect our positions on June 28. We amended it on July 16.
We deeply regret this error and the concern it has caused, especially at such a fraught moment for our nation. We are committed to full transparency and maintaining the trust of our clients. As such, we are reviewing our internal procedures and our processes with the third-party vendor that assists with SEC filings to better understand how this happened and avoid similar issues moving forward.
https://austinprivatewealth.com/news-and-events
Why did you remove DJT on your amendment but not remove other smaller options positions?
The de minimis reporting standards apply not only to options but also to the underlying stock related to the options. Small option positions that are included in the amended report are included because the underlying stock position was above the de minimis amount, either in dollar value, number of shares, or both. Likewise, a large option position would result in reporting an underlying stock that is below de minimis amounts. In the case of DJT, once the error was corrected, the total holdings of the underlying stock and related options were below the de minimis amount for actual reporting.