$Trump Media & Tech(DJT.US)DJT announced a partnership with Crypto.com to airdrop digital tokens to shareholders, which seems to have a restraining effect on short sellers.

1. Stock supply (the pool of lendable shares) Before the record date, a large number of shareholders who are bullish on the company or want to receive the tokens will choose to "lock" their positions and no longer lend their shares to short sellers. This leads to a sharp decrease in the number of shares available for lending in the market, directly pushing up the "stock borrowing rate," which is the real cost that short sellers have to pay daily.

2. Additional obligations for short sellers This is the most critical part. Short sellers holding shares on the record date are theoretically obligated to deliver an equivalent amount of DJT tokens to the original shareholders who lent them the shares. However, these tokens are "non-tradable," and short sellers cannot buy them from the open market. They have only two choices: • Option A: Before the record date, buy shares at market price to return and close the short position. This will directly push up the stock price. • Option B: Negotiate with the share lender to pay a high cash compensation instead of the tokens. This compensation will become a huge loss for the short seller.