r/wallstreetbets Mar 26, 11:12 PM
This is the dumbest shit I've seen in awhile FOLLOWUP [DD] Hello all,
A lot has happened in the last two days since my post.
No, I did not close my position, I am not a paper handed bitch.
1) Citron research has advertised their short position and confirmed my thesis. The NAV multiple is retarded. They also point out some sketchy promotional behavior from Fundrise, the fund owners.
https://preview.redd.it/fu5ls8g41hrg1.png?width=1083&format=png&auto=webp&s=c367c0ca2d00581351b9b5c7f410a86590d9a5fe
2) Fundrise is now dumping on retail. A few hours ago this released from the SEC:
https://www.sec.gov/Archives/edgar/data/1867090/000197415826000028/xsl144X01/primary_doc.xml
On the day of the short report, while 90% of investors are locked up and cannot sell, Fundrise dumped $23M of $VCX.
https://preview.redd.it/xecmazce1hrg1.png?width=2511&format=png&auto=webp&s=85a63315cd6a71dfa9a740a753eb00931e92b2e2
This is a grift in plain sight, and this sale confirms it. For anyone that can't see how this works for Fundrise:
Step 1) List your company with 10% float
Step 2) Advertise to retail, get the momentum ball rolling for massive buying disconnected from the fundamentals
Step 3) Low float + high volume = squeeze, leads to inflated prices and ridiculous NAV multiples, but nobody can sell! Their shares are restricted for 6 months.
Step 4) ????
Step 4) Profit. Legally dump your unrestricted shares in the flagship fund onto retail on the open market while prices are inflated and float is low.
Again, this remains a clear short. I am still holding my position. Short borrow fee spiked to ~400%, but this should be temporary until the inevitable 90% collapse. You pay about ~1% a day to short.
https://preview.redd.it/0i2rn2q32hrg1.png?width=570&format=png&auto=webp&s=6604fd0c55bd8222aa8be66780f39c17155faf3c
Last thread: https://www.reddit.com/r/wallstreetbets/comments/1s2w3nf/this_is_the_dumbest_shit_ive_seen_in_awhile_dd/
submitted by /u/Virtual_Seaweed7130
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