Crypto trader’s fake Nasdaq memecoin takeover claim falls apart within hours

A pseudonymous crypto trader sparked widespread attention on September 1, 2026, by claiming to have secretly bought a controlling stake in a Nasdaq-listed penny stock for $1.8 million. The trader said the plan was to pair the equity with a memecoin—a type of cryptocurrency often created as a joke or for speculation—and launch a short-squeeze campaign against what they claimed was 92.3% of the stock’s float already sold short.

Within hours, the story unraveled. A proposed Community Note on X quickly debunked the claim, pointing out that no company matching the trader’s description existed. The trader later admitted to fabricating key details, including the precise numbers, and backtracked on the memecoin idea entirely.

Unrealistic numbers and missing disclosures

The trader’s post included unusually specific figures: a $4.8 million market cap, a $0.12 share price, 92.3% short interest, $6.2 million in debt, and $380,000 in revenue. They also claimed to have acquired a 37.4% stake for $1.8 million over three weeks through two brokers to avoid moving the price.

Critics noted that a stake of this size would typically require a public disclosure filing with the U.S. Securities and Exchange Commission (SEC). Additionally, a short interest of 92.3% on a stock priced at 12 cents is highly implausible, as sub-$1 stocks are difficult to borrow at scale.

Pattern of misinformation in crypto-stock crossover schemes

This incident follows a recent trend of crypto influencers spreading misleading information about traditional stocks. The night before, memecoin traders attempted—and failed—to squeeze short-sellers on Nasdaq-listed Hims & Hers, demonstrating that memecoin trading activity does not directly affect stock prices.

Earlier in the summer, crypto influencers promoted the idea of tokenizing NYSE-listed GameStop stock using memecoins or smart contracts on Robinhood Chain. However, an investigation found that 354 out of 361 Robinhood Chain contracts using the GameStop ticker (GME) had no actual connection to the company’s stock.

What is confirmed

• A pseudonymous trader posted a claim on X about buying a controlling stake in a Nasdaq-listed penny stock to launch a memecoin-fueled short squeeze.
• The post gained over 800,000 views before being debunked.
• A proposed Community Note on X pointed out that no company matching the trader’s description existed.
• The trader admitted to fabricating numbers and later retracted the memecoin aspect of the plan.
• A 37.4% stake in a public company would typically require an SEC disclosure.
• Short interest of 92.3% on a 12-cent stock is highly unlikely.
• Previous attempts to link memecoin trading to stock movements, such as with Hims & Hers and GameStop, have failed or been misleading.

Why this matters

The incident highlights the risks of misinformation in crypto-related stock schemes. Claims about tokenizing stocks or using memecoins to influence traditional markets often lack factual basis, as shown by the rapid debunking of this trader’s story and the earlier findings about fake GameStop contracts on Robinhood Chain.

Sources

• Protos