In a tumultuous week for Trump Media & Technology Group Corp, the company's stock has experienced a significant 25 percent decline, further dampening investor confidence. The decline comes on the heels of a merger with Digital World Acquisition Corp in late March, which has seen the company's stock plummet by over 38 percent.

Adding to the company's woes, borrowing fees for short selling the stock have dropped drastically. Last week, the short borrow fee stood at a staggering 790 percent, resulting in a daily cost of around $1 per share for bullish short sellers. However, as of Friday, the borrowing fee has plummeted to 124 percent, reducing the daily expense to a mere 10 cents per share.

Short selling involves investors borrowing stocks they believe will decrease in value, selling them at the current market price, and repurchasing them later at a lower price to make a profit. The reduced costs associated with short-selling Trump Media's stock indicate a shift in market perceptions of risk surrounding the company.

Meanwhile, former President Donald Trump, who remains the largest shareholder of Trump Media with a 58.1 percent stake, has seen the value of his holdings tank. Once valued at approximately $5.5 billion, his stake now stands at $2.4 billion and continues to slide. Compounding his troubles is a six-month post-merger lockup period that prohibits the sale of his shares.

The instability in Trump Media mirrors the legal challenges faced by Trump himself. As he prepares to face trial for hush money payments made to adult film actress Stormy Daniels during the 2016 presidential campaign, he is also embroiled in another case involving the alleged illegal retention of classified documents at his Mar-a-Lago estate. These legal challenges, including 34 counts of falsifying business records and 40 felony counts related to retained classified documents, may have significant ramifications for Trump's ability to manage his business affairs.

While Trump Media's market capitalization has witnessed billions of dollars wiped out, the reduced costs of short selling have further exacerbated the company's financial struggles. As Trump grapples with forthcoming trials that could potentially result in convictions, uncertainties loom over the future of both the company and its principal shareholder.

Disclaimer: The above article is generated based on the provided information and does not contain any additional facts or opinions.