Max Sound Corporation Announces Short Squeeze Situation On Its Stock

14-06-2018

Explains Illegal Naked Shorting Being Perpetrated By Major Market Makers on MAXD Shares

8,117,878,650 shares shorted in the past year, which is more than 40% of MAXD’s total trading volume   

SAN DIEGO, June 13, 2018 (GLOBE NEWSWIRE) -- MAXD (OTC PK:MAXD) / Max Sound Corporation. Max Sound Corporation has engaged a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance related to substantial short selling of its stock. Regulation SHO requires bona-fide market-making activities to include making purchases and sales in roughly comparable amounts. The Securities and Exchange Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative selling strategies for investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security. Likewise, where a market maker posts continually at or near the best offer, but does not also post at or near the best bid, the market maker's activities do not qualify as bona-fide market making. Moreover, a market maker that continually executes short sales away from its posted quotes is not considered to be engaged in bona-fide market making.

MAXD market makers have been monitored daily for compliance with Reg SHO and Fair Market-Making Requirements.  Here is a trading analysis of MAXD.  BuyVol = real buyers at offer.  SellVol = real sellers at bid. ShortVolume = short sale trade identifiers for both EXEMPT (market makers) and NON-EXEMPT (everyone else) shorts sales. The short selling as a percentage of daily trading volume in MAXD by your firm is abnormally high; the market-making math related thereto does not reconcile and is not at all compliant with Federal Securities Laws. 

As is common during these orchestrated short selling campaigns, bad actors with no real interest in MAXD’s success, or any small public company for that matter, has consistently engaged in false accusations and libel on the Company’s stock chat boards in attempts to scare and demoralize MAXD’s legitimate shareholders. It is noteworthy that as soon as Max Sound sent this report to the market makers perpetrating the naked short sales on the company, the bad actors disappeared at least for the time being.

Here is a primer on the subject at hand https://counterfeitingstock.com/CounterfeitingStock.html and here is a powerful article put into actual practice https://theintercept.com/series/penny-stock-chronicles/

ANALYSIS and ACTION

We have analyzed the last year of daily short volume data and correlated it to recent market making activity in MAXD.  In 27 of the past 31 trading days, 87% of the time, the combined selling and short selling in MAXD has far exceeded the amount of buying (See NetNet column below).  Market makers, by definition, are required to PROVIDE LIQUIDITY not extract or remove liquidity. The math provided below demonstrates that instead of matching orders, market makers, Knight/Virtu, Cantor Fitzgerald, Canaccord Genuity, Citadel, eTrade/G1 are heavily shorting MAXD stock BOTH on the offer and on the bid, which by definition means they have a “speculative short selling strategy” running on MAXD. They are carrying net short positions overnight and continuing to claim the market maker’s exemption, which is in VIOLATION of the Fair Market Making Requirements of Regulation SHO.  We are able to mathematically prove this because there is not enough BuyVol (buy volume) to match the amount of selling and short selling. The chart below identifies the top 5 market makers, in MAXD for May 2018 (highlighted below) accounting for 2,257,870,595 shares of trading, or 88.22% of total trading volume in May. 

Total Volume   Name  
(Last Month)

643,662,180    Knight/Virtu,
154,447,100    Cantor Fitzgerald,
203,762,081    Canaccord Genuity,
769,731,954    Citadel,
247,276,817    Trade/G1

Highlighting these Market Makers abusive activities in-concert with each other for just the one month of May, allows regulators, the SEC, FINRA, the U.S. Attorney as well as the media to easily identify the manipulative trading activity and counterfeiting of MAXD shares engaged in by their traders for the past year and well beyond. When overlaid for the entire year (back to June 1, 2017) the math is shocking. 8,117,878,650 total shares have been shorted representing in excess of 40% of MAXD’s total trading volume and it demonstrates that these market makers have knowingly participated in manipulative trading practices and counterfeiting of MAXD shares.

We provide the following data in this report:

DAILY TOTAL SHARES SHORTED (volume and price), which includes all shares shorted even by exempt institutions such as market makers.

FAILURES TO DELIVER (naked shorts).

MARKET MAKER SHARE VOLUME (exposing exactly how many shares are being traded and the name of the market making firm traded through).

MARKET MAKER DATA (showing whether or not a fair market is being made in each trading day).

CUMULATIVE TOTAL SHARES SHORTED data showing large short positions and the volume weighted average price that a short squeeze will start.

Date ShortVolume Total Volume Percent Squeeze Trigger $Value
6/8/2018 15,701,300 107,574,934 14.60 % $ 0.0004 $ 6,281
6/7/2018 53,355,529 165,271,184 32.28 % $ 0.0004 $ 21,342
6/6/2018 648,355,630 1,238,570,544 52.35 % $ 0.0005 $ 324,178
6/5/2018 65,351,875 96,413,875 67.78 % $ 0.0004 $ 26,141
6/4/2018 46,779,267 107,384,333 43.56 % $ 0.0004 $ 18,712
6/1/2018 289,758,138 362,031,358 80.04 % $ 0.0003 $ 86,927
5/31/2018 4,949,999 112,476,935 4.40 % $ 0.0003 $ 1,485
5/30/2018 116,156,059 380,530,660 30.52 % $ 0.0003 $ 34,847
5/29/2018 19,961,309 54,883,438 36.37 % $ 0.0002 $ 3,992
5/25/2018 1,514,244 33,174,777 4.56 % $ 0.0003 $ 454
5/24/2018 8,870,000 40,350,000 21.98 % $ 0.0003 $ 2,661
5/23/2018 64,000,850 112,982,073 56.65 % $ 0.0003 $ 19,200
5/22/2018 4,093,333 7,003,931 58.44 % $ 0.0003 $ 1,228
5/21/2018 3,230,900 19,691,678 16.41 % $ 0.0003 $ 969
5/18/2018 83,819,569 207,235,030 40.45 % $ 0.0003 $ 25,146
5/17/2018 117,944,438 261,529,492 45.10 % $ 0.0003 $ 35,383
5/16/2018 31,857,477 82,434,227 38.65 % $ 0.0003 $ 9,557
5/15/2018 17,602,398 40,532,801 43.43 % $ 0.0003 $ 5,281
5/14/2018 59,639,388 160,659,434 37.12 % $ 0.0003 $ 17,892
5/11/2018 4,345,525 45,242,353 9.60 % $ 0.0003 $ 1,304
5/10/2018 9,486,439 12,293,638 77.17 % $ 0.0003 $ 2,846
5/9/2018 73,012,030 209,322,909 34.88 % $ 0.0003 $ 21,904
5/8/2018 117,699,386 183,193,959 64.25 % $ 0.0003 $ 35,310
5/7/2018 13,376,500 31,810,960 42.05 % $ 0.0003 $ 4,013
5/4/2018 23,450,725 52,153,194 44.97 % $ 0.0003 $ 7,035
5/3/2018 17,529,266 27,504,964 63.73 % $ 0.0003 $ 5,259
5/2/2018 18,156,576 54,003,987 33.62 % $ 0.0003 $ 5,447
5/1/2018 145,586,693 428,196,155 34.00 % $ 0.0003 $ 43,676
4/30/2018 25,360,367 74,589,316 34.00 % $ 0.0003 $ 7,608
4/27/2018 68,975,488 202,869,083 34.00 % $ 0.0004 $ 27,590
4/26/2018 30,661,676 90,181,401 34.00 % $ 0.0004 $ 12,265
4/25/2018 29,057,092 85,462,035 34.00 % $ 0.0005 $ 14,529
Total 8,117,878,650 19,886,222,304 40.82 % $ 0.0008 $ 6,178,916
*Total includes data back to 6-1-17. Chart truncated for viewing.  

The below data is used to calculate if a fair market is being made in the shares of MAXD.

Date Change BuyVol SellVol NetVol
6/8/2018 $ 0.0000 17,239,100 90,335,834 -73,096,734
6/7/2018 -$ 0.0001 34,585,376 130,685,709 -96,100,333
6/6/2018 $ 0.0001 718,621,354 520,049,090 198,572,264
6/5/2018 $ 0.0000 19,290,250 77,123,600 -57,833,350
6/4/2018 $ 0.0000 9,789,292 97,595,041 -87,805,749
6/1/2018 $ 0.0001 346,326,535 15,704,771 330,621,764
5/31/2018 $ 0.0000 6,762,532 105,714,403 -98,951,871
5/30/2018 $ 0.0000 496,000 304,034,660 -303,538,660
5/29/2018 -$ 0.0001 21,441,309 33,442,129 -12,000,820
5/25/2018 $ 0.0000 6,960,433 26,214,344 -19,253,911
5/24/2018 $ 0.0000 16,320,000 14,030,000 2,290,000
5/23/2018 $ 0.0000 52,786,898 60,195,110 -7,408,212
5/22/2018 $ 0.0000 6,153,265 850,666 5,302,599
5/21/2018 -$ 0.0002 6,545,966 13,145,712 -6,599,746
5/17/2018 $ 0.0001 191,564,349 54,965,143 136,599,206
5/16/2018 $ 0.0000 32,444,345 49,989,882 -17,545,537
5/15/2018 $ 0.0000 18,047,797 22,485,000 -4,437,203
5/14/2018 $ 0.0000 61,868,765 98,790,669 -36,921,904
5/11/2018 $ 0.0000 9,802,358 35,439,995 -25,637,637
5/10/2018 $ 0.0000 7,024,956 5,268,682 1,756,274
5/9/2018 -$ 0.0001 91,600,582 92,722,293 -1,121,711
5/8/2018 $ 0.0001 141,953,079 20,916,000 121,037,079
5/7/2018 $ 0.0000 15,236,500 16,574,460 -1,337,960
5/4/2018 $ 0.0000 32,000,946 20,152,248 11,848,698
5/3/2018 $ 0.0000 19,550,266 4,000,698 15,549,568
5/2/2018 $ 0.0000 23,776,487 30,227,500 -6,451,013
5/1/2018 $ 0.0000 92,767,740 279,428,348 -186,660,608
4/30/2018 $ 0.0000 19,343,405 55,245,911 -35,902,506
4/27/2018 $ 0.0000 39,658,700 125,210,383 -85,551,683
4/26/2018 -$ 0.0001 20,298,214 69,883,185 -49,584,971
4/25/2018 $ 0.0000 10,472,153 74,989,882 -64,517,729
4/24/2018 $ 0.0000 27,222,242 102,120,578 -74,898,336
4/23/2018 $ 0.0000 189,184,851 309,886,738 -120,701,887
4/20/2018 $ 0.0001 532,198,608 308,760,532 223,438,076
4/19/2018 -$ 0.0001 55,461,550 187,511,107 -132,049,557

MAXD is making this report available to the investment world to create a substantial short squeeze opportunity with the goal to return to its shareholders the massive amount of equity stolen by unscrupulous market makers.

About Max Sound Corporation:  As creators of the acclaimed MAXD HD Audio, Max Sound can provide a better solution for Audio, Video and Data transmissions. Max Sound Corporation is an owner of the Optimized Data Transmission Technology patent portfolio. Max Sound®, MAXD® and MAXD Audio Perfected® and HD Audio® are registered trademarks. All other trademarks are the property of their respective owners.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website https://maxd.audio or at https://www.sec.gov.

Contact: info@maxsound.com
SOURCE Max Sound Corp.

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