Explains Illegal Naked Shorting Being Perpetrated By Major Market Makers on MAXD Shares
8,117,878,650 shares shorted in the past year, which is more than 40% of MAXD’s total trading volume
SAN DIEGO, June 13, 2018 (GLOBE NEWSWIRE) -- MAXD (OTC PK:MAXD) / Max Sound Corporation. Max Sound Corporation has engaged a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance related to substantial short selling of its stock. Regulation SHO requires bona-fide market-making activities to include making purchases and sales in roughly comparable amounts. The Securities and Exchange Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security. Likewise, where a market maker posts continually at or near the best offer, but does not also post at or near the best bid, the market maker's activities do not qualify as bona-fide market making. Moreover, a market maker that continually executes short sales away from its posted quotes is not considered to be engaged in bona-fide market making.
MAXD market makers have been monitored daily for compliance with Reg SHO and Fair Market-Making Requirements. Here is a trading analysis of MAXD. BuyVol = real buyers at offer. SellVol = real sellers at bid. ShortVolume = short sale trade identifiers for both EXEMPT (market makers) and NON-EXEMPT (everyone else) shorts sales. The short selling as a percentage of daily trading volume in MAXD by your firm is abnormally high; the market-making math related thereto does not reconcile and is not at all compliant with Federal Securities Laws.
As is common during these orchestrated short selling campaigns, bad actors with no real interest in MAXD’s success, or any small public company for that matter, has consistently engaged in false accusations and libel on the Company’s stock chat boards in attempts to scare and demoralize MAXD’s legitimate shareholders. It is noteworthy that as soon as Max Sound sent this report to the market makers perpetrating the naked short sales on the company, the bad actors disappeared at least for the time being.
Here is a primer on the subject at hand http://counterfeitingstock.com/CounterfeitingStock.html and here is a powerful article put into actual practice https://theintercept.com/series/penny-stock-chronicles/
ANALYSIS and ACTION
We have analyzed the last year of daily short volume data and correlated it to recent market making activity in MAXD. In 27 of the past 31 trading days, 87% of the time, the combined selling and short selling in MAXD has far exceeded the amount of buying (See NetNet column below). Market makers, by definition, are required to PROVIDE LIQUIDITY not extract or remove liquidity. The math provided below demonstrates that instead of matching orders, market makers, Knight/Virtu, Cantor Fitzgerald, Canaccord Genuity, Citadel, eTrade/G1 are heavily shorting MAXD stock BOTH on the offer and on the bid, which by definition means they have a “speculative short selling strategy” running on MAXD. They are carrying net short positions overnight and continuing to claim the market maker’s exemption, which is in VIOLATION of the Fair Market Making Requirements of Regulation SHO. We are able to mathematically prove this because there is not enough BuyVol (buy volume) to match the amount of selling and short selling. The chart below identifies the top 5 market makers, in MAXD for May 2018 (highlighted below) accounting for 2,257,870,595 shares of trading, or 88.22% of total trading volume in May.
Total Volume Name
(Last Month)
643,662,180 Knight/Virtu,
154,447,100 Cantor Fitzgerald,
203,762,081 Canaccord Genuity,
769,731,954 Citadel,
247,276,817 Trade/G1
Highlighting these Market Makers abusive activities in-concert with each other for just the one month of May, allows regulators, the SEC, FINRA, the U.S. Attorney as well as the media to easily identify the manipulative trading activity and counterfeiting of MAXD shares engaged in by their traders for the past year and well beyond. When overlaid for the entire year (back to June 1, 2017) the math is shocking. 8,117,878,650 total shares have been shorted representing in excess of 40% of MAXD’s total trading volume and it demonstrates that these market makers have knowingly participated in manipulative trading practices and counterfeiting of MAXD shares.
We provide the following data in this report:
DAILY TOTAL SHARES SHORTED (volume and price), which includes all shares shorted even by exempt institutions such as market makers.
FAILURES TO DELIVER (naked shorts).
MARKET MAKER SHARE VOLUME (exposing exactly how many shares are being traded and the name of the market making firm traded through).
MARKET MAKER DATA (showing whether or not a fair market is being made in each trading day).
CUMULATIVE TOTAL SHARES SHORTED data showing large short positions and the volume weighted average price that a short squeeze will start.
| Date | ShortVolume | Total Volume | Percent | Squeeze Trigger | $Value | |||
| 6/8/2018 | 15,701,300 | 107,574,934 | 14.60 | % | $ | 0.0004 | $ | 6,281 |
| 6/7/2018 | 53,355,529 | 165,271,184 | 32.28 | % | $ | 0.0004 | $ | 21,342 |
| 6/6/2018 | 648,355,630 | 1,238,570,544 | 52.35 | % | $ | 0.0005 | $ | 324,178 |
| 6/5/2018 | 65,351,875 | 96,413,875 | 67.78 | % | $ | 0.0004 | $ | 26,141 |
| 6/4/2018 | 46,779,267 | 107,384,333 | 43.56 | % | $ | 0.0004 | $ | 18,712 |
| 6/1/2018 | 289,758,138 | 362,031,358 | 80.04 | % | $ | 0.0003 | $ | 86,927 |
| 5/31/2018 | 4,949,999 | 112,476,935 | 4.40 | % | $ | 0.0003 | $ | 1,485 |
| 5/30/2018 | 116,156,059 | 380,530,660 | 30.52 | % | $ | 0.0003 | $ | 34,847 |
| 5/29/2018 | 19,961,309 | 54,883,438 | 36.37 | % | $ | 0.0002 | $ | 3,992 |
| 5/25/2018 | 1,514,244 | 33,174,777 | 4.56 | % | $ | 0.0003 | $ | 454 |
| 5/24/2018 | 8,870,000 | 40,350,000 | 21.98 | % | $ | 0.0003 | $ | 2,661 |
| 5/23/2018 | 64,000,850 | 112,982,073 | 56.65 | % | $ | 0.0003 | $ | 19,200 |
| 5/22/2018 | 4,093,333 | 7,003,931 | 58.44 | % | $ | 0.0003 | $ | 1,228 |
| 5/21/2018 | 3,230,900 | 19,691,678 | 16.41 | % | $ | 0.0003 | $ | 969 |
| 5/18/2018 | 83,819,569 | 207,235,030 | 40.45 | % | $ | 0.0003 | $ | 25,146 |
| 5/17/2018 | 117,944,438 | 261,529,492 | 45.10 | % | $ | 0.0003 | $ | 35,383 |
| 5/16/2018 | 31,857,477 | 82,434,227 | 38.65 | % | $ | 0.0003 | $ | 9,557 |
| 5/15/2018 | 17,602,398 | 40,532,801 | 43.43 | % | $ | 0.0003 | $ | 5,281 |
| 5/14/2018 | 59,639,388 | 160,659,434 | 37.12 | % | $ | 0.0003 | $ | 17,892 |
| 5/11/2018 | 4,345,525 | 45,242,353 | 9.60 | % | $ | 0.0003 | $ | 1,304 |
| 5/10/2018 | 9,486,439 | 12,293,638 | 77.17 | % | $ | 0.0003 | $ | 2,846 |
| 5/9/2018 | 73,012,030 | 209,322,909 | 34.88 | % | $ | 0.0003 | $ | 21,904 |
| 5/8/2018 | 117,699,386 | 183,193,959 | 64.25 | % | $ | 0.0003 | $ | 35,310 |
| 5/7/2018 | 13,376,500 | 31,810,960 | 42.05 | % | $ | 0.0003 | $ | 4,013 |
| 5/4/2018 | 23,450,725 | 52,153,194 | 44.97 | % | $ | 0.0003 | $ | 7,035 |
| 5/3/2018 | 17,529,266 | 27,504,964 | 63.73 | % | $ | 0.0003 | $ | 5,259 |
| 5/2/2018 | 18,156,576 | 54,003,987 | 33.62 | % | $ | 0.0003 | $ | 5,447 |
| 5/1/2018 | 145,586,693 | 428,196,155 | 34.00 | % | $ | 0.0003 | $ | 43,676 |
| 4/30/2018 | 25,360,367 | 74,589,316 | 34.00 | % | $ | 0.0003 | $ | 7,608 |
| 4/27/2018 | 68,975,488 | 202,869,083 | 34.00 | % | $ | 0.0004 | $ | 27,590 |
| 4/26/2018 | 30,661,676 | 90,181,401 | 34.00 | % | $ | 0.0004 | $ | 12,265 |
| 4/25/2018 | 29,057,092 | 85,462,035 | 34.00 | % | $ | 0.0005 | $ | 14,529 |
| Total | 8,117,878,650 | 19,886,222,304 | 40.82 | % | $ | 0.0008 | $ | 6,178,916 |
| *Total includes data back to 6-1-17. Chart truncated for viewing. | ||||||||
The below data is used to calculate if a fair market is being made in the shares of MAXD.
| Date | Change | BuyVol | SellVol | NetVol | |
| 6/8/2018 | $ | 0.0000 | 17,239,100 | 90,335,834 | -73,096,734 |
| 6/7/2018 | -$ | 0.0001 | 34,585,376 | 130,685,709 | -96,100,333 |
| 6/6/2018 | $ | 0.0001 | 718,621,354 | 520,049,090 | 198,572,264 |
| 6/5/2018 | $ | 0.0000 | 19,290,250 | 77,123,600 | -57,833,350 |
| 6/4/2018 | $ | 0.0000 | 9,789,292 | 97,595,041 | -87,805,749 |
| 6/1/2018 | $ | 0.0001 | 346,326,535 | 15,704,771 | 330,621,764 |
| 5/31/2018 | $ | 0.0000 | 6,762,532 | 105,714,403 | -98,951,871 |
| 5/30/2018 | $ | 0.0000 | 496,000 | 304,034,660 | -303,538,660 |
| 5/29/2018 | -$ | 0.0001 | 21,441,309 | 33,442,129 | -12,000,820 |
| 5/25/2018 | $ | 0.0000 | 6,960,433 | 26,214,344 | -19,253,911 |
| 5/24/2018 | $ | 0.0000 | 16,320,000 | 14,030,000 | 2,290,000 |
| 5/23/2018 | $ | 0.0000 | 52,786,898 | 60,195,110 | -7,408,212 |
| 5/22/2018 | $ | 0.0000 | 6,153,265 | 850,666 | 5,302,599 |
| 5/21/2018 | -$ | 0.0002 | 6,545,966 | 13,145,712 | -6,599,746 |
| 5/17/2018 | $ | 0.0001 | 191,564,349 | 54,965,143 | 136,599,206 |
| 5/16/2018 | $ | 0.0000 | 32,444,345 | 49,989,882 | -17,545,537 |
| 5/15/2018 | $ | 0.0000 | 18,047,797 | 22,485,000 | -4,437,203 |
| 5/14/2018 | $ | 0.0000 | 61,868,765 | 98,790,669 | -36,921,904 |
| 5/11/2018 | $ | 0.0000 | 9,802,358 | 35,439,995 | -25,637,637 |
| 5/10/2018 | $ | 0.0000 | 7,024,956 | 5,268,682 | 1,756,274 |
| 5/9/2018 | -$ | 0.0001 | 91,600,582 | 92,722,293 | -1,121,711 |
| 5/8/2018 | $ | 0.0001 | 141,953,079 | 20,916,000 | 121,037,079 |
| 5/7/2018 | $ | 0.0000 | 15,236,500 | 16,574,460 | -1,337,960 |
| 5/4/2018 | $ | 0.0000 | 32,000,946 | 20,152,248 | 11,848,698 |
| 5/3/2018 | $ | 0.0000 | 19,550,266 | 4,000,698 | 15,549,568 |
| 5/2/2018 | $ | 0.0000 | 23,776,487 | 30,227,500 | -6,451,013 |
| 5/1/2018 | $ | 0.0000 | 92,767,740 | 279,428,348 | -186,660,608 |
| 4/30/2018 | $ | 0.0000 | 19,343,405 | 55,245,911 | -35,902,506 |
| 4/27/2018 | $ | 0.0000 | 39,658,700 | 125,210,383 | -85,551,683 |
| 4/26/2018 | -$ | 0.0001 | 20,298,214 | 69,883,185 | -49,584,971 |
| 4/25/2018 | $ | 0.0000 | 10,472,153 | 74,989,882 | -64,517,729 |
| 4/24/2018 | $ | 0.0000 | 27,222,242 | 102,120,578 | -74,898,336 |
| 4/23/2018 | $ | 0.0000 | 189,184,851 | 309,886,738 | -120,701,887 |
| 4/20/2018 | $ | 0.0001 | 532,198,608 | 308,760,532 | 223,438,076 |
| 4/19/2018 | -$ | 0.0001 | 55,461,550 | 187,511,107 | -132,049,557 |
MAXD is making this report available to the investment world to create a substantial short squeeze opportunity with the goal to return to its shareholders the massive amount of equity stolen by unscrupulous market makers.
About Max Sound Corporation: As creators of the acclaimed MAXD HD Audio, Max Sound can provide a better solution for Audio, Video and Data transmissions. Max Sound Corporation is an owner of the Optimized Data Transmission Technology patent portfolio. Max Sound®, MAXD® and MAXD Audio Perfected® and HD Audio® are registered trademarks. All other trademarks are the property of their respective owners.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website http://maxd.audio or at http://www.sec.gov.
Contact: info@maxsound.com
SOURCE Max Sound Corp.