As The SEC Finally Gets Involved In CYNK, One Short Has A Big Problem

Tyler Durden's picture

It took the SEC only a week (after we first reported on it) to get involved with a company that does not exist, and whose stock rose nearly 30,000% in a few days, on a few thousand shares traded, hitting a nearly $6 billion market cap before it was finally halted for trading as we reported earlier. From the SEC:

However, even in its halt, CYNK ("don't be cynkal, be hopeful" perhaps Obama would say) continues to provide entertainment.

Case in point, this sad individual who on that bulletin board of epic retail investor comedy, Yahoo Finance, has explained their problem: it appears some brokers actually did allow shorting of CYNK, at a cost. A rather high and recurring cost it would appear.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Dubaibanker's picture

You're fucked mate!

Have a nice life, living in poverty!

Leonardo Fibonacci2's picture

Yeah my advice is:  Home Depot has a sale on nail guns.....

90's Child's picture

I'm glad I don't play stocks beside company 401K

I would have made my attempt to short it.

Shows what I know.

Long Au, Ag, Pb,

Keyser's picture

You play with fire, you get burned... Shorting a penny stock using margin is a fools game... Som Nam Na... 


Keyser's picture

Someone else's money... Hope he can pay the vig...


remain calm's picture

The stock will be reported to have ZERO value. Yiou will get a 100% return on your money

American Dreams's picture

Hows tat old saying go "the only way to win is not to play" 

No more lies, no more lies


fonzannoon's picture

If CYNK represents the market than that sucker on Yahoo perfectly represents why the day it crashes, the shorts will never see a penny.

Mark Carney's picture

LOL ZH got honorable mention on bloomberg today for this!!!


Well done!

power steering's picture

Looks like a damn good position to me. Who charges interest on a credit balance? When it repoens it'll be at .01 cent.

fx's picture

well, maybe not. and it could get worse. interest could be raised and if the broker can't locate stock to borrow, he may have to buy in. of course, with the stock halted, there can be no buy-in. meaning that the position could stay open with a god-knows-how-high borrowing cost. Imagine, the position carries on for a year or two and interest costs wipe out any profits - and those interest has to be paid instantly while the profits may show up much later.

Someone did sometghing he didn't know about properly - at least not when it comes to the risks involved. As they say, a sucker's born every minute.

kliguy38's picture

YOU CAN NOT make money shorting this market EVEN when it crashes. Get out of paper if you can't afford to lose the casino money. 

onewayticket2's picture

right.  their customers are paying 12% ad infinitim....locked in.

Matt's picture

Is that 12% annual, calculated daily and compounded monthly? If so, that's probably not too bad.

Can a person sue the SEC for locking them into a loss?

Oxbo Rene's picture

Call Yellon, tell her ya need a bail out ! ! !

BuddyEffed's picture

Cover your short with a lawsuit seeking damages.

CheapBastard's picture

They chose Belize b/c Nigeria turned them down?

BuddyEffed's picture

If this CYNK thing was either a money laundering scheme or some funding channel for some black ops equivalent stuff, then I suspect no authorities will ever be able to find any of the parties involved.

Pairadimes's picture

No one is allowed to beat the banksters at their own game. Any attempt to do so, legal or not, will be punished.

bobnoxy's picture

The shorts already have their money. They sold the shares at whatever they were selling for. Unless the SEC cancels his sale due to fraud, maybe.

RaceToTheBottom's picture

Good link and article....

I am very glad that the US Stockmarket meets its role of providing capital for smaller companies to grow by..............  LOL

fonzannoon's picture

don't forget hft's are there to provide liquiditeeee

Tom Terrific's picture

I hate fucking nosey websights that force you to sign in before you can read it, especially through google+

fonzannoon's picture

sorry about that Tom. Forgot they make you do that.

Dens's picture

To see the text:

Right click - Save Page As - HTML - open her up

hairball48's picture

Not true. division by 0 is not possible.

In this case our short seller will have a negative return


bobnoxy's picture

I'm guessing you've never shorted a stock before?

algol_dog's picture

That's true. Better yet, if I recall right, no capital gains have to be paid on a issue that goes bust.

syntaxterror's picture

Busting out the Thai. Nicely done.

lipskid's picture

On what planet can you short a stock and not have a margin account?

Ski12568's picture

Scott Trade didn't even have shares to short. I call bullshit

Tall Tom's picture

I hope that the price of Au, Ag, Pt, and Pd well as the price of Pb Bullets.


I do not know about you but I like buying something when it is on sale.


Only people who want to sell it are cheerleaders for Price Increases.

FeralSerf's picture

We have some good news and some bad news.

First the good news: Au, Ag, Pt, Pd and Pb have all declined substantially. The bad news is none of them are available for purchase.

This reminds one of the old Soviet Union. The good news is everything in the stores is very cheap and can be bought with worthless rubles. The bad news is there's nothing in the stores.

Sometimes some of these items might become available on the black market. If one includes the value of the incarceration and torture in the price paid for them, the price is not cheap. Police like to confiscate these items.

Thirty years ago, it was possible to buy gold items in the SU at bargain prices with US dollars. It the police caught you, you also got a free vacation in Siberia working in the gold mines.

CheapBastard's picture

My doctor has a similar joke he likes to tell appropo the above:


We have some good news and some bad news.


The good news is all of you are now covered by Obamacare health care insurance.



The bad news is that no doctors are now accepting Obamacare health insurance.

fortune114's picture

How about the doctor who phones one of his patients after reviewing his tests:

Doc: "The good news is: from the tests I concluded you have 24 hours to live."

Patient: "What? THAT'S THE GOOD NEWS?  What's the bad news????!!!"

Doc: "I've been trying to get a hold of you since yesterday morning!"

Overfed's picture

Lead already encased in copper jackets in the shape of bullets.

Tall Tom's picture

My advice is that you need to stop reading Yahoo Finance.


The next advice, which I offered yesterday on Zerohedge, is to NOT PARTICIPATE IN A FRAUD.


Principles before Profits


He deserves it.

Tall Tom's picture

I refuse to participate in any transaction where both parties do not win.


If I can provide my product for a price, if the purchaser can use my product, and if the purchaser is willing to pay the price, then we both win...regardless of how much I profit.


Imagine that...a fair trade...Something for something...Hey that is a novel concept. Hopefully it catches on.

Dr. Kenneth Noisewater's picture

Not only ARE a sucker and his money soon parted, they SHOULD be.

Fairness is for commies.

tarsubil's picture

If you are fine with acquiring wealth through fraud, you must love our current system. 

tmosley's picture

You don't need fraud to take money from suckers.

Treason Season's picture

You're redundant. Your favorite zionist turd already proved that.