- Allegations claim over 1 billion naked short MSTR shares versus a float of ~267M, sparking outrage and heavy social media speculation.
- Potential forced selling could pressure MicroStrategy’s Bitcoin-heavy balance sheet, risking BTC liquidation and wider market ripple effects.
- Claims remain unverified—investors demand FINRA/SEC/DTCC data while speculation implicates big banks like JPMorgan in possible market manipulation.
In a stunning development that’s sent shockwaves through the crypto and stock markets, MicroStrategy (NASDAQ: MSTR), the Bitcoin-focused company led by CEO Michael Saylor, is at the center of a potential scandal involving over 1 billion naked short shares.
The allegations, first raised by X user @Hamnakedshorts and amplified by have ignited a firestorm of speculation, with investors showing a mix of outrage, skepticism, and bullish defiance as the story unfolds.
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The Details Unpacked
The controversy kicked off Tuesday evening when @Hamnakedshorts posted on X, boldly stating, “$MSTR I think the CEO and his lawyers need to reach out to me Michael J. Saylor wake up Fast.
The NUMBER OF NAKED SHORTS in this name is NORTH of 5,000,000,000 shares. Lets say I am crazy make it 2.5BILLION Or 1 BILLION.”
The post included a screenshot highlighting MicroStrategy’s float—approximately 267.1 to 267.25 million shares available for public trading—raising questions about how such a massive number of counterfeit shares could exist.
Naked short selling, where shares are sold without being borrowed or delivered, is a practice the SEC has sought to regulate since 2005 with Regulation SHO, yet its persistence continues to fuel debate.
Fast forward to this morning, and retail investors on social media are escalating the claims.
The news has put MicroStrategy’s aggressive Bitcoin acquisition strategy under a microscope, with the company holding 649,870 BTC—about 3% of the total Bitcoin supply—as of the latest reports.
Investor Sentiment: A Rollercoaster of Reactions
The X posts have triggered a torrent of responses, reflecting a polarized investor community.
Some are calling for action, with @OperationHodl urging, “Buy strategy daily people. This is what we do to make it hurt.”
Others, like @stoicscarcity and @RMStojk, echo the sentiment with simple yet forceful “Buy $MSTR!!!” and “Wait until the $GNS lawsuit sets a precedent.
That’ll open the floodgates for $MSTR and $GME,” suggesting a belief that legal battles could turn the tide.
Skepticism runs deep, however. @cantstopnl demanded transparency, writing, “• FINRA data • SEC fails-to-deliver records • DTCC reports • Short interest filings. Show us.”
Meanwhile, @indyval expressed confusion over the mechanics, asking, “How are naked shorts even possible… how can someone sell something that doesn’t exist,” highlighting the complexity and opacity of the issue.
On the flip side, frustration is palpable among some holders.
@Caddy519 lamented, “Watching my MSTY plummet has been excruciating,” pointing to the stock’s recent volatility, which has dropped significantly amid the allegations.
@DougKinnison offered a cynical take, noting, “Doesn’t matter. They learned through the $GME game that they can just shuffle things around in the dark pools / off exchanges and it’s all good.”
What This Means for MicroStrategy and Bitcoin
MicroStrategy’s strategy of leveraging debt to buy Bitcoin has long been a double-edged sword.
With only $54 million in cash against hundreds of millions in annual obligations, the company’s financial tightrope walk is now under intense scrutiny.
If the naked short claims hold water, they could indicate a coordinated effort to suppress MSTR’s stock price, potentially forcing the company to sell Bitcoin to cover obligations—a scenario that could ripple through the crypto market.
Yet, the narrative isn’t one-sided.
Some investors see this as a buying opportunity, betting that Saylor’s vision and MicroStrategy’s Bitcoin treasury could weather the storm.
The company’s stock, often seen as a proxy for Bitcoin’s value, has become a battleground for retail and institutional players alike.
MSTR stock is currently down over 40% this year-to-date and nearly 50% in the past year.
The Bigger Picture: Regulatory and Market Implications
Naked short selling has been a contentious issue since the 2008 financial crisis, with the SEC vowing a “zero tolerance” policy under Chairman Christopher Cox.
If proven, over 1 billion naked shorts would dwarf previous cases, raising questions about enforcement and the integrity of NASDAQ trading.
The involvement of dark pools and off-exchange transactions, as hinted by @DougKinnison, adds another layer of complexity, suggesting that regulators may need to step in with renewed vigor.
For Bitcoin enthusiasts, this saga underscores a broader tension.
As Simon Dixon of Bitcoin HardTalk noted in a related thread, “The real battle is derivative, money, stock, crypto & bond printers v Bitcoin in self-custody.”
If MicroStrategy is indeed a target, it could signal a larger fight between traditional financial institutions and the decentralized future Bitcoin represents.
JPMorgan’s Role in the MicroStrategy Controversy
Amid the swirling allegations of naked short selling targeting MicroStrategy, JPMorgan Chase & Co. has emerged as a focal point of speculation and scrutiny.
The banking giant, a cornerstone of the traditional financial-industrial complex (FIC), is rumored to be leveraging its market influence to pressure MicroStrategy’s stock.
This narrative gained traction following comments from Simon Dixon, a former investment banker and Bitcoin HardTalk host, who suggested that “JPMorgan and the broader financial-industrial complex are using their old vassalization tactics to control $MSTR.”
Dixon pointed to JPMorgan’s historical tactics, including the acceptance of Bitcoin and Ethereum as loan collateral—a move that some interpret as a strategic play to integrate and potentially manipulate crypto markets.
Further fueling the debate, recent reports from CryptoPotato (November 24, 2025) highlighted JPMorgan’s alleged short position on MicroStrategy, with analysts suggesting it could backfire if the stock rallies.
The bank’s deep ties to the Federal Reserve and its role in facilitating derivatives and liquidity choke points have led some to speculate it’s actively defending the legacy financial order against MicroStrategy’s Bitcoin-centric model.
Additionally, JPMorgan’s $285 million settlement with Epstein-related victims, as noted by Dixon, has resurfaced in discussions, adding a layer of reputational risk to its involvement.
Investors are left wondering whether JPMorgan’s actions are a calculated move to suppress MicroStrategy’s valuation—or a broader signal of the FIC’s resistance to the decentralized future Bitcoin represents.
So, What’s Next?
As of today, no official response has come from MicroStrategy or Michael Saylor, leaving investors hanging.
The lack of hard data—FINRA records, SEC filings, or DTCC reports—means the claims remain speculative for now.
However, the sheer volume of discussion on X suggests this story won’t fade quickly.
Investors are watching closely, with some preparing to buy the dip and others demanding accountability.
This could be a defining moment for MicroStrategy, Saylor’s legacy, and the intersection of traditional finance and cryptocurrency.
Whether the naked short allegations are confirmed or debunked, the market’s reaction will likely set a precedent for how such controversies are handled moving forward.
Stay tuned as this story develops—your next move might depend on it.
Also Read: Short Sellers Are Now Throwing One Another Under the Bus
