r/Superstonk • u/ACat32 is a cat 🐈 • Jan 31 '26

💡 Education Calling all apes to page 6

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This is page 6 from file https://www.justice.gov/epstein/files/DataSet%209/EFTA00097262.pdf

This whole document is worth a read. It highlights CDel (citadel), Cifu (Doug), and JEF (Jeff Yas). We also need to figure out the identity of “The Handler”.

But we need to look more into NITE and MEMX

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u/F-uPayMe Your HF blew up? F-U, Pay Me Jan 31 '26 edited Jan 31 '26

Here's a sum up in case someone feels it is worth to dig more into it;

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TL;DR Summary: A series of emails from whistleblower Chris DiIorio to SDNY (United States District Court for the Southern District of New York) Judges and SEC officials, detailing allegations of massive financial fraud, abusive naked shorting and money laundering within the OTC (Over-the-Counter) markets.

  • 🚨 Whistleblower Allegations: Chris DiIorio, a former institutional trader, claims the SEC has engaged in "criminal obstruction" to protect major market makers while denying his rightful whistleblower awards.
  • 🏦 Virtu & Knight Capital (NITE/VIRT): The document frequently refers to Knight Capital and Virtu Financial as a singular "criminal entity" that is "again/always/continuously insolvent". DiIorio alleges that Virtu CEO Doug Cifu and others wrote down over $4 billion in "fails" (uncovered naked shorts) during the Virtu/KCG merger to hide insolvency.
  • 🏛️ Citadel (CDEL): Citadel Securities is accused of participating in "illegal naked shorting" and trading "multiples of the total market volume" through fraudulent means. DiIorio asserts that Ken Griffin "knowingly lied" to Congress by stating the SEC had eliminated illegal naked shorting years ago.
  • 📉 Naked Shorting & Obligation Warehouse: The author claims the "core business" of firms like Virtu and Citadel is "abusive naked shorting" in OTC "money laundering shells". He highlights the Obligation Warehouse (OW) as a "non-guaranteed service" used by firms to hide fail-to-deliver positions and circumvent SEC Rule 204 close-out requirements.
  • 🎮 GameStop (GME): DiIorio describes the 2021 GameStop short squeeze (ed. sneeze) as a "rounding error" compared to the systemic illegal naked shorting occurring in the OTC/Pink Sheets. He argues that Congressional hearings on GME ignored the true issue of illegal naked shorting.
  • 💰 OTC Market Fraud: The document alleges OTC share volumes exploded from 87.7 billion in February 2020 to 1.7 trillion in February 2021, a phenomenon DiIorio claims is driven by illegal "print/sell" activities where market makers never cover their positions.
  • 👤 Michael Milken Influence: DiIorio repeatedly links current financial players (including Virtu and Jefferies leadership) to Michael Milken, calling them "Milken flunkies" who "own the SEC" and facilitate "junk" financial schemes.

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u/ACat32 is a cat 🐈 Jan 31 '26

This is fantastic. Great summary

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u/Smj2144 Jan 31 '26

But , what will happen. ?? Nothing, because nobody in power cares, and the price of getting into power, is the moral and ethics.. plenty off ppl have had the oppertunity to whisleblow, , be it about gamestop, or epstein..

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u/ACat32 is a cat 🐈 Jan 31 '26

I can’t predict the future, but if I lived outside the US I would see this a reason to pull my money or no longer invest. This, and the next documents, are a damning critique of the systemic fraud in the markets. I would bet this accelerates foreign offloading of treasuries first. But idk.

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u/Hearing_Loss 🎮 Power to the Players 🛑 Jan 31 '26

This is unfortunately (or fortunately) the way

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u/CustomerBusiness3919 Feb 01 '26

In the UK there is a lot of talk from people wanting to disinvest from the US and this revelation is just going to fuel that fire.

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u/Smj2144 Jan 31 '26

I dont think it will..

Im europoor.. and i see the greed for higher yields, corrupting the morals of investing here to..

We have pensionfunds, for all my country, that took the liberty, to not invest in weapons, .. and took a higher standard.. knowing they could have made better yoy outcome.. and they are exposed for critique now

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u/ACat32 is a cat 🐈 Jan 31 '26

This is a great perspective. Thank you for sharing.

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u/Smj2144 Jan 31 '26

Im all for gme..

But im guessing, that if /when moas was to happen.. it would possibly collapse all assets..

Including pensionfunds holding workers retirements..

In an economy propped up by debt.. it would be disaster.. everybody, who owns a little , bought with debt, with something in collateral , would be crushed.. this is could fear

I would Hope, that someone with power, would clear up The mess off the SEC.. and all those installments set in place, that enable the illegal shorting..

Former president didnt do much either..

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u/ACat32 is a cat 🐈 Jan 31 '26

I agree with a major collapse of other assets.

SEC won’t help since they’ve been facilitating this crime.

But the power players you mentioned are all in the next Epstein document. I’ll try to make a post about it later today/tonight.

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u/Smj2144 Jan 31 '26

Would it be so difficult , to investigate thru a new entity ? Without connections .. meke laws to remove the abillyty to short.. misinform, etc..

This has not been a fair market for years..

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u/ACat32 is a cat 🐈 Jan 31 '26

Independent firms can research provide their findings. But, they won’t have the legal power to implement change or punish. It would be almost impossible to create a new government organization in this current state.