Memecoin Squeeze Scheme Falls Apart Over Math

A pseudonymous crypto trader claimed to have bought a controlling stake in a NASDAQ-listed penny stock for $1.8 million, intending to squeeze short-sellers through a memecoin. He announced plans to tokenize his equity and launch a campaign against the '92.3%' of the float he claimed was already sold-short.

However, no such company exists, according to a proposed Community Note on X. Three hours later, the trader admitted that he had fabricated some numbers, saying he intentionally made them obscure to deter front-running.

The trader's plan relied on pairing tokenized equity with a memecoin and using it to create 'the biggest crossover story in financial history'. However, his specificity about the stock's metrics was quickly proven false. The trader first claimed that 92.3% of the float was shorted, but then retracted this statement.

This is not an isolated incident. Crypto influencers have repeatedly been caught spreading misinformation about real stocks, often to promote memecoins or other cryptocurrency-related schemes. In one case, a researcher found 354 out of 361 Robinhood Chain contracts using the GME ticker had no link to GameStop's actual stock.