Feb. 2 at 2:46 PM
$DRCT This is how the scam operates. It’s a coordinated setup between company management, their friendly hedge fund (Circle Capital), and market makers because without market maker participation, the timing wouldn’t be this precise every time.
Management sells discounted shares (around 97% of market value) directly to Circle Capital, who are already short. When the timing is right, circle covers their shorts the company releases a small piece of news just enough to create a price spike and bring in volume. As the stock runs to their pre-planned level, they unload millions of shares into the buying pressure while simultaneously shorting again.
Retail investors think it’s a breakout and start averaging down, but the dilution and shorting overwhelm the move. The price collapses… then the cycle resets and repeats.
