Thread by @DXNCRA

Lets talk OSTKO
...and rational behavior.

This is going to take a few tweets, but I'll lead with the conclusion:

Capital markets, $OSTK in particular, are broken. There's a very real chance that tZero is about to fix it. The dividend proves it can be done. Game OVER.

$OSTK has declared a dividend of a digital preferreds OSTKO at a 1:10 ratio.

There exists ~125,000 shares of OSTKO outstanding. Overstock has authorized an additional ~4M shares, 3.7M of which will be issued via the dividend.

Byrne holds half the OSTKO outstanding.

Accordingly, ~60k shares represent the tradeable OSTKO float.

Meanwhile, there are (we'll know more this afternoon) approximately 12M shares held short at various different brokerage houses, who will in-turn be obligated to buy 1.2M shares of OSTKO in order to deliver.

If 1.2M bids chasing 60k shares sounds impossible, its because it is. Literally.

What IS possible? Well, covering 12M shares of short common is one option. If unpleasant for a bear, its certainly doable. NOT impossible. After all, today's volume alone was 6M shares in $OSTK.

They dont all plan on doing it. The retail brokers are making retail shorts cover right now. But the big dogs will thumb their nose, because they have a plan. What is this $OSTK plan?

I'm about to tell you.

The OSTKO dividend will be cash settled for the shorts.

Mark my word, @DXNCRA said it first and firmest, with significant research and effort.

Does that sound like a good plan? Before the bulls shout "Hooray! We'll take your cash instead", you'll need to know what cash?

The cash settle is going to be determined on dino.tzero.

Its a real platform after all, with approval and everything. For everyone who hasn't signed up, and has been a bull, you're too late.

What the bulls don't understand is that the shorts also have dino.tZero accts.

They own OSTKO, in scraps and small lots.

Whats more, as of today, we are in the averaging period for the cash settlement of OSTKO which will culminate next week.

This is the when/where/how of setting the price for a cash settled equivalent of OSTKO. It began today.

How do we know they exist? How do we know the shorts have infiltrated the platform?

For one, you may recall a post I made about a $1.00 offer for OSTKO smelling rotten. This was a mistake, they were playing games, but outed themselves when they did it.

I remain rational.

read this:
investors.overstock.com/static-files/a…

and this:
investors.overstock.com/static-files/3…

Now you know everythign you need to know about how OSTKO can NEVER trade below $OSTK. Offering it in small quantities at $1.00 is obvious deliberate behavior.

And like that, now we see offers on dino.tzero to sell OSTKO today. Let no one feign this is a surprise occurrence.

Moreover, offering OSTKO at $26 today, when $OSTK is trading $24.00 is nonsensical. Not buying it at $26 is equally nonsensical.

And this is the battleground. Its begun. The shorts were probably hoping that they could get a few low prints up in the averaging period.

If you are long this name and you don't want to see OSTK and tZero get skewered by yet another loophole and round of price manipulation, you should be buying OSTKO on dino.tZero right now.

If you don't, they will settle the dividend at pennies and this sage will carry on.

So...whats it going to be? Who's got an active dino.tzero acct that needs an ACH immediately?

@ihors3 @AlderLaneeggs @HiddenPivots @TheReckoningOne @sevencornerscap @Noursalehi @gnoble79 @JJohnsonNow @tzeroblockchain @PatriotByrne @Travis_Kling @unemon1

@ihors3 @AlderLaneeggs @HiddenPivots @TheReckoningOne @sevencornerscap @Noursalehi @gnoble79 @JJohnsonNow @tzeroblockchain @PatriotByrne @Travis_Kling @unemon1 Maybe a #nomorenakedshorts with a screen shot of your dino.tzero fills is in order here?

@ihors3 @AlderLaneeggs @HiddenPivots @TheReckoningOne @sevencornerscap @Noursalehi @gnoble79 @JJohnsonNow @tzeroblockchain @PatriotByrne @Travis_Kling @unemon1 $26b - $27.10

That took 4 shares of OSTKO to move the price $9.00

This battle is going to take place every single day until ex-div next Friday.

@ihors3 @AlderLaneeggs @HiddenPivots @TheReckoningOne @sevencornerscap @Noursalehi @gnoble79 @JJohnsonNow @tzeroblockchain @PatriotByrne @Travis_Kling @unemon1 Mid-market for OSTKO is 24.50 right now.

That's $1.00 below the common $OSTK for a preferred series of stock, that sits above common in the cap table.

Rational? Not really.

If you are live on dino.tzero its an arbitrage. If you are not live, then you get to watch in awe.