Tom Laresca has a right mind to use the word “jokers” re the agency.

A Wall Street trader said Cynk Technology Corp.’s (CYNK) 36,000 percent stock surge cost him his job, and he blames a short squeeze and regulators who didn’t halt the shares before the company’s value shot past $6 billion. Tom Laresca, a market-maker at Buckman Buckman & Reid Inc., said he was among traders who thought they spotted a scam as the shares jumped to $2.25 last month from pennies. He sold it short last week around $6 — which means selling stock you don’t own with a plan to buy it cheaper soon, pocketing the difference. Laresca figured the Securities and Exchange Commission would suspend trading, sending the price toward zero. Cynk has said it’s a social-network service with no revenue and one employee. “The stock looked worthless, if there’s even a company behind it,” Laresca said. “My 10-year-old knew it was a scam. It was a complete joke.”

Instead of falling, the share price more than doubled the next day, July 9, starting the squeeze. Market-makers who had sold the stock short got nervous and scrambled to buy stock to close their positions, driving it even higher, Laresca said. The SEC stopped trading two days later, citing concerns about the accuracy of information in the marketplace and “potentially manipulative transactions.” That was too late, Laresca said. “When it goes from 6 cents to $16 and you haven’t done anything about it, I’m sorry but you fell asleep at the wheel,” he said. “Everybody knew it. How come they didn’t know it?” Laresca said that his firm cut off his ability to hold positions after the Cynk fiasco and that he plans to resign today.

Cynk Short Squeeze Blamed by Trader for Costing Him Job [Bloomberg]

16 comments (hidden to protect delicate sensibilities)
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Comments (16)

  1. Posted by Captain Oblivious | July 15, 2014 at 2:41 PM

    So if it went the other way and fell to zero it would have been okay? You are a fucking idiot for trading penny stocks I feel no sympathy for you. Who do you work for Tim Sykes??

  2. Posted by tim sykes | July 15, 2014 at 2:43 PM

    rude

  3. Posted by Captain Oblivious | July 15, 2014 at 2:57 PM

    Guy tried to make a quick buck without doing his homework, got steamrolled and now wants to cry about it. Fuck em

  4. Posted by Tim the Toolman | July 15, 2014 at 2:58 PM

    ruuuuhhhrrr???

  5. Posted by guest | July 15, 2014 at 3:07 PM

    tough but fair.

    -TL

  6. Posted by guest | July 15, 2014 at 3:07 PM

    Basically.

  7. Posted by Captain Oblivious | July 15, 2014 at 3:15 PM

    More like Bucketshop, Bucketshop and Ripoff. Amiright??

  8. Posted by Im_a_Dude | July 15, 2014 at 3:20 PM

    sounds like he should start his own firm with Shaxar

  9. Posted by UBS TV Quant | July 15, 2014 at 3:30 PM

    Remember Wall St Warriors?? Hahhaa OMG that show was terrible

  10. Posted by Market Maker | July 15, 2014 at 3:38 PM

    Do "market makers" short individual stocks? Shouldn't making a market be a part of being a market maker?

  11. Posted by Strong island | July 15, 2014 at 3:40 PM

    No sympathy for penny stock piker getting run over because he doesn't understand his own crooked craft.

  12. Posted by Captain Oblivious | July 15, 2014 at 3:41 PM

    If this guy was really shorting this stock then he would have been closed out on the open t4. There is definitely not a borrow on this flaming piece of dogshit

  13. Posted by Mortimer Duke | July 15, 2014 at 4:53 PM

    Turn those machines back on!!!!!

  14. Posted by Junior Bevill | July 15, 2014 at 4:54 PM

    Ooo, Webster, Webster annnd Cohen

  15. Posted by Dogshit | July 15, 2014 at 6:52 PM

    I resent that.

  16. Posted by Marlon Sanchez | July 16, 2014 at 10:14 AM

    Aww, Tom, maybe you should come to Belize and file for a refund?