Shares of Trump Media, trading under the ticker DJT, have experienced a significant decline, erasing all gains since their debut last month. The stock's current price stands at approximately $36, a stark drop from its peak of $66 on March 27.

Experts caution against drawing definitive conclusions regarding the stock's movement due to a high percentage of available shares reflecting traders' bets that the stock will fall. Around 12% of the stock listing represents short-selling, one of the highest ratios among active stocks. This indicates that much of the trading activity revolves around investors positioning their bets on the future movements of Trump Media's stock.

According to Ihor Dusaniwsky, Managing Director at S3 Partners, a data and predictive analytics company, traders are engaging in various strategies. While some seek to profit further from the declining prices, others are hoping to "squeeze" the short positions by speculating that an event or development will cause the stock price to rise.

Dusaniwsky likened the current situation to a standoff, saying, "This seems more like the gunfight at the OK Corral, with both sides waiting for the other to act first."

The rollercoaster ride of the stock price has had a corresponding impact on former President Donald Trump's net worth. As the majority shareholder, his net worth has fallen from approximately $5.2 billion to around $2.9 billion.

However, these figures are inconsequential for Trump because he is contractually prohibited from selling or leveraging his shares for six months. In a recent Truth Social post, Trump expressed confidence in the company's business and dismissed criticisms of its ability to reach a wide audience as "lies."

Contrary to Trump's statement, company filings reveal that Trump Media suffered a loss of $58.2 million last year and did not report any user metrics. Additionally, the company's auditor issued a "going concern" notice, casting doubt on its ability to stay afloat.

Nonetheless, Trump Media's CEO, former U.S. Congressman Devin Nunes, expressed optimism about the company's future in a news release. Nunes stated, "Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform." He emphasized their intention to make Truth Social the go-to free-speech platform for the American people.

As the stock's volatility continues, market observers eagerly await the outcome of this battle between short-sellers and investors who anticipate a rebound in Trump Media's stock price.