• Former President Donald Trump declared that short sellers are "getting wiped out" amid a surge in shares of Trump Media & Technology Group.
  • The stock jumped over 20% in early trading following Trump's comments, squeezing bearish investors holding significant short positions.
  • Short interest in the company remains elevated, with over 15% of shares sold short, according to recent data.

A Stirring Statement

Donald Trump took to social media on Thursday morning to proclaim that short sellers betting against his media company are facing heavy losses. "Short sellers are getting wiped out!" he wrote on Truth Social, his platform. The post came as shares of Trump Media & Technology Group (TMTG) soared more than 20% in early trading, piling pressure on bears who have been targeting the stock.

The company, which operates the Truth Social app, has seen its stock price swing wildly since going public earlier this year. With a market capitalization of roughly $6 billion and limited revenue, it has become a favorite among retail traders and a target for short sellers.

Market Reaction and Context

As of 10:30 a.m. ET, shares were up 22%, trading at $38.50. The surge was accompanied by heavy options activity, with call volume spiking. According to people familiar with the matter, some short sellers were forced to cover positions as the rally intensified, amplifying the move.

Short interest in TMTG stood at 15.2% of the float as of last week, according to data from S3 Partners. That's well above the average for U.S. stocks, making it vulnerable to a short squeeze—a rapid price increase fueled by shorts buying back shares.

Political and Regulatory Angles

The statement reignites debate about the intersection of politics and markets. Trump, who holds a majority stake in TMTG, has previously criticized short selling, calling it "un-American." His comments come as the Securities and Exchange Commission (SEC) under Chair Gary Gensler has pursued tighter rules on short selling, though no recent policy changes have been announced.

A spokesperson for the SEC declined to comment, and representatives for Trump Media did not respond to requests for comment.

Historical Precedent

This is not the first time Trump has weighed in on market dynamics. During his presidency, he frequently tweeted about stock market performance and individual companies, sometimes sparking price swings. The phenomenon has drawn scrutiny but remains legal.

Outlook

Analysts remain divided on TMTG's trajectory. Some see the stock as overvalued given the company's financials, while others bet on continued retail enthusiasm and potential political catalysts. Without a sustained positive development, the stock could revert, but for now, short sellers are licking their wounds.

Note: This article was updated at 11:00 a.m. ET to reflect continued trading gains.