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GME counterfeit shares?

Personal Finance & Money Asked on February 3, 2021

There’s an article which claims that short sellers + brokers + DTCC sometimes manufactures counterfeit shares through legal and less-than-legal means to attack vulnerable companies and profit from their demise. Some redditors have claimed that GME may have more shares outstanding than it should, and thus that there exist counterfeit shares. I tried to research this claim and found some suspicious numbers which I hope that more knowledgeable folks can explain.

  • According to its balance sheet, as of beginning of last year, GME had issued 64.3 million shares.
  • According to Yahoo Finance, it currently has 69 million shares outstanding.
  • Insiders hold 27.33% of all shares
  • Institutional investors hold 122%163% of all shares

I understand that the SEC allows market makers/clearing houses to maintain naked shorts which temporarily inflate the number of shares outstanding, but 5 million? Really? That’s almost 10% of the total shares! And how is it that insiders + institutions hold nearly 190% of all shares? This is the part that really stood out to me. When I look at the comparable values for, say, AMZN, everything adds up as I would expect.

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