Don’t look now, but Trump Media (NASDAQ:DJT) is once again soaring. Shares of DJT stock are up nearly 11% in early afternoon trading, bringing the company’s total gains over the past week to more than 40%. That’s a nice move for speculators in this divisive but high-profile de-SPAC company.

Trump Media is surging today on reports that the company has requested a probe into possible manipulation of the stock. Via a process known as naked short selling, in which synthetic shares are created and sold (which don’t exist), certain hedge funds and individual investors can take short positions without actually borrowing shares. This practice is illegal and, while hard to prove, has been shown to actually take place in certain instances.

It’s hard to know exactly what any findings will be or if the House GOP leaders who receive this request will act on it. But for now, those speculating on DJT stock like the fact that there’s a catalyst to latch onto.

Let’s dive into what to make of this announcement and what investors should be watching.

DJT Rockets Higher on Concerns About Potential Stock Manipulation

It’s worth noting that Trump Media CEO Devin Nunes’s recent letter to the GOP House members was preceded by a similar letter to the Nasdaq Exchange. The company clearly has some reason to believe there’s some funny business going on beneath the surface. Other companies in high-profile meme stocks that saw similar surges have made similar allegations in the past, with differing outcomes.

Anomalous trading activity seen in DJT stock is purportedly the cause for this letter. The question Nunes has for the powers at be is whether a probe can be initiated to determine if any nefarious activity is actually taking place, including “whether any laws including RICO statutes and tax evasion laws were violated.”

I have to say, given Trump’s political clout, these allegations may get more attention than those made by other CEOs of beaten-down meme stocks in the past. Cries of “the market is rigged” are typically brushed off by regulators (though not always). But with Trump tied to this company and his political future largely resting on being able to pull his capital out of Trump Media, there may be a greater willingness to see what’s going on here.

Overall, these letters are certainly intriguing. If something is found, those speculating on this stock could be in for a big windfall. If naked short selling is unlawfully pinning down this stock’s price and retail investors step into DJT stock in increased quantity, it’s possible a short squeeze could be on the horizon. In my view, that’s what’s going on with this stock today.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.