Elon Musk JUST got WhistleBLOWN!

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building your wealth especially real

estate boy oh boy whistleblower just

threw a wrench into the elon musk versus

twitter deal let's give you a preview of

what's going on here so first of all we

know that elon musk agreed to purchase

twitter for fifty four dollars and

twenty cents of per share since then

elon musk has said that the acquisition

is on hold pending elon musk's review of

how many bots are actually on twitter

this has led the twitter share price to

fall to a current price of 39.86

it's down 7.32 today especially on these

whistleblower claims that came out today

which could actually support elon musk

winning in his lawsuit against twitter

to not

buy twitter see because even though elon

musk agreed to buy twitter for 54.20

he said that the deal was on hold

because he wants to review how many bots

there actually are because he doesn't

believe twitter's disclosure in their

sec filings that they're only five

percent bots now most people honestly

don't believe that there are only five

percent bots onto on the twitter

platform that there are probably a lot

more bots the problem with this is

twitter may not have actually had an

obligation to properly disclose how many

bots there truly were in fact on or in

this july 17 video i made i not only

showed this uh disclaimer that twitter

has in their sec filing which basically

says hey we think it represents fewer

than five percent of our monetized daily

active users that is we think

the bots are less than five percent of

our monetizable base which is a really

complicated metric where basically you

might carve out certain groups of people

and say well our monetizable users

which have way less bots are only five

percent bot heavy but everything else if

you include all users sure maybe we have

more bots but even this they qualify

with making this in making this

determination we applied significant

judgment so our estimate for false or

spam accounts may not accurately

represent the actual numbers uh and then

later in the video i talked about how

basically

elon musk

can't necessarily say that twitter was

fraudulently misrepresenting their bots

because twitter may not actually have

had an obligation

to prove how many bots there really are

on the platform and so what i did is i

made this analogy that if you are buying

a property a home let's say in real

estate and you're doing a home

inspection it's your obligation to

protect yourself and make sure the

plumbing's good it's not the seller's

obligation to go inspect the plumbing

for you and tell you if it's good now if

the seller knows it's broken they have a

duty to disclose it to you and if they

lie about it that would be bad and so

this is kind of where we've been

standing the last couple months since

this you know elon musk lawsuit has

broken up i've had this position that

what elon musk needs to find is fraud he

needs to find fraud at twitter

unfortunately i tweeted yesterday that

there is the possibility that elon musk

subpoenaing jack dorsey could

potentially be a sign that they're

having trouble finding evidence of fraud

in fact i tweeted a subpoena sent by

elon musk's team to jack dorsey might

imply elon's team hasn't yet found a

smoking gun of fraud that bodes well for

twitter again if elon can prove fraud he

will likely win however if he can't find

fraud elon will likely own twitter soon

and of course i quote tweeted my

original tweet which elon musk has

replied to twice where i said some say

elon musk has to buy twitter as is with

the bots because he quote waived his

rights to due diligence

wrong

section 10b5 twitter of the sec code

says that twitter can be liable for

omissions

of or misleading material facts waiving

due diligence does not mean you have to

accept a fraudulent disclosure so this

is just a fancy way of saying look if

twitter knew the bot numbers were wrong

and then they lied to elon elon has a

much higher likelihood of winning in the

legal battle

but elon musk needs evidence because

twitter likely has no obligation to say

yeah well this is how many bots we

actually think there are they could make

a very simple sample that could be a

very bad sample it could be poor

business and they could be a crappy

business but they never said that their

estimates had to be perfect and this is

basically what i roughly said in this

video here i'm going to play about 10

seconds of this and then i want to get

to the whistleblower listen to this from

july 19th could be wrong in fact it

probably is wrong but that doesn't make

it fraudulent that doesn't make it a

material adverse effect so this is where

elon again big uphill battle he'd

probably have to show that twitter knows

they were lying that's going to be tough

ho ho ho

enter oh hey soul blower

now

oh boy i want to temper your

expectations because it's still not a

slam dunk okay it is still not a slam

dunk but basically there's this dude

whom i'm going to call mr z okay so mr z

was the security lead senior executive

team responsible for information

security privacy physical security i.t

and twitter service blah blah blah

whatever he got canned okay this guy got

fired and he's pissed he got fired he's

not very happy he got fired okay fine so

now

this guy goes to the company called

whistleblower aid which is the same

company that represented the facebook

whistleblower when she testified before

congress coming out about all these

allegations about basically how facebook

knows that instagram is bad for teenage

girls and yet they kind of try to

bury that fact even though their own

research shows that they know instagram

and comparison photos can be bad for

girls and i'll tell you i look i'm not a

girl i don't identify as a girl but

there is a thing called the toxicity of

relativity uh i think there's a way

some president or some fancy person

previously said uh comparison is the

theft of joy something that effect

basically it all means the same thing

when you compare yourself you become

unhappy so be careful doing that but

anyway facebook had always researched i

got whistleblown by same company okay so

this guy is now

basically going to this law firm which

put together this crazy set of documents

and says the following that mr z alleges

that the ceo

explicitly told mr z to provide

documents which both of them knew would

be false and misleading regarding

security matters to the twitter board of

directors

now that's just the tip of the iceberg

and there are even more things in this

that we're not even going to talk about

in this video because this video is

going to be about the elon versus

twitter thing which we're going to talk

about and this goes deep but let's go

ahead and jump over to the twitter

versus elon stuff because this is where

it gets interesting and then we'll make

some conclusions about what this means

for elon's potential case

anyway take a look at this right here in

response to elon musk saying that the

twitter deal is temporary on temporarily

on hold pending details supporting

calculations that spam fake accounts do

indeed represent less than five percent

of users right here keep in mind elon

says users not monetizable daily active

users right the ceo replied first let me

state the obvious spam harms the

experience of for real people on twitter

and therefore can harm our business as

such we are strongly incentivized to

detect and remove as much spam as we

possibly can every single day anyone who

suggests otherwise is just wrong so the

ceo is responding to elon saying no no

no we

have a duty to get rid of the spam and

and we're all in on getting rid of spam

to this mr z comes out with the dirt he

says the ceo's tweet was a lie and that

the twitter executives are actually not

incentivized to detect or report total

spam in fact twitter has a proprietary

measure and it's an opaque metric of

users called monetizable daily active

users and this is defined as valid user

accounts that italicized might click

through ads and might actually buy a

product and from twitter's perspective

monetizable daily active users was an

improvement because it could internally

define the formula and thereby report

numbers which would reassure

shareholders and advertisers and

executive bonuses which could exceed 10

million dollars are tied to growing that

number so let me give you a very

simplified explanation of what that

could potentially look like so the first

thing we're going to do is we're going

to draw a heap of

smelly crap right here okay this heap of

smelly crap is twitter and what we're

gonna do here is we're gonna say this

portion or about 20 of it maybe even 25

of it is spam

what twitter is basically saying is hey

we might have this pile of heaping

stinky trash

but we're just going to grab a snapshot

right

here of our user base and we're going to

grab a snapshot of this stinky piley

you know

disgusting mess of trash and poop

and as long as that

middle blue thing which the blue thing

we're going to call monetizable daily

active users as long as that middle blue

thing

is getting

larger

we get paid more

even if the poop pile has now

potentially quadrupled in size and

there's spam everywhere around that poop

pile and only a little bit is in that

mdau which if you recall that mdau

letter or or acronym rather is exactly

what they purposefully put in their sec

filing they put that in the sec filing

because they say and here it is i'm

going to pull it up on screen again this

is from my older video they purposefully

use that mdau

acronym because that's where they could

just take the slice of people they want

and say hey well that slice is growing

yeah sure maybe all the other stinky

poop is growing but when you zoom in and

just look at this

that's reasonably only five percent

it's kind of ridiculous so anyway that

is this this this clarity that mr z

gives us here and he mentions that there

are millions of active active accounts

that are not counted in mdau either

because they are spam bots which now

makes that five percent number

artificially low or because twitter does

not believe they can monetize these

individuals

then mr z goes on to say that ignorance

was the norm among the executive

leadership team

in fact when mr z asked the head of site

integrity

what the underlying spam bot numbers

actually were their response was quote

oops that's a pile of poop we don't

really know the company could not even

provide an accurate upper bound to the

number of poop or spam bots on the

platform the site integrity team gave

three reasons for this failure one they

didn't know how to measure it two they

were buried under constant firefighting

and couldn't keep up with reacting to

bots and other platform abuse and number

three

senior management didn't really want to

know because as mr z learned from a

different sensitive source they were

concerned that if accurate measurements

became public

it would harm the valuation of the

company how interesting so in other

words

greedy executives worried that you know

we don't want to tell the truth about

how much poop we got on our platform

because damn that's going to hurt our

compensation now no freaking wonder when

elon says he's going to buy twitter all

of a sudden everyone's freaking out and

having group handhold therapy sessions

at twitter because there's some serious

lying going on now

mr z goes on to say that even the board

of directors understood the

counterproductive incentives in place

and in or around q3 2021 in a board risk

committee meeting a director asked why

more progress has not been made around

bots

our client remembers mr z remembers

an executive of the company admitting to

the board members that the company had

intentionally and knowingly

deprioritized platform health to focus

on growth and this is where mr z goes on

to say with his attorneys and keep in

mind that everything in this document is

an allegation and therefore could be

wrong and one-sided although we do have

twitter's response which i'm going to

read to you in just a moment

it is worth noting that mr z goes on to

say that twitter created this mdau

metric precisely to avoid having to

honestly answer the very questions mr

musk raised which now creates some very

interesting potential changes in the

twitter deal which i'm going to talk

about in just a moment but first let's

take a look at twitter's reply this is

the ceo of twitter replying there are

news reports claiming that twitter's

privacy security and data protection

practices were made by that were made by

mr z a former twitter executive who was

terminated for ineffective leadership

and poor performance uh and we are

reviewing the red acted claims that have

been published but what we've seen so

far is a false narrative that is riddled

with inconsistencies and inaccuracies

and presented without uh without proper

context

i know this is frustrating and confusing

to read given that mr z was accountable

for many aspects of this work that he is

now inaccurately portraying more than

six months after his termination but

none of this takes away from the

important work you have done and

continued to do to safeguard the privacy

and security of our customers in their

data this year alone we have

meaningfully accelerated our progress

through increased focus on the inc and

the incredible leadership from

other tweeter people

this work continues to be an important

priority for us and if you want to read

more about our approach you can find a

summary here given the spotlight on

twitter at the moment we can assume that

we will continue to see more headlines

in the coming day this will only make

our work harder i know that all of you

take a lot of pride in the work we do

together and

and the values that guide us we will

pursue all paths to defend our integrity

as a company and set the record straight

so in other words their response is yeah

yeah well well well that's wrong and

it's and it's riddled with with things

that that don't have the right context

okay

the context is

we lied because we wanted to get rich

anyway sorry okay all right so what now

is the impact to the potential lawsuit

well we don't actually have a

concrete smoking gun

yet

for elon musk but

this is an ally for elon musk this is

somebody that elon musk's team you can

bet is already on the phone with going

how much can we pay you for the evidence

we have or that you have rather so that

we can have it in our fight against

twitter because we need everything you

got because it sounds to me

like even mr z

as an executive

witness who worked at the company and

someone who is able to provide testimony

about how

the executives at twitter purposefully

orchestrated their numbers and their sec

filings purposefully for the purpose

that's a lot of purpose take a shot

every time i say okay maybe i don't but

anyway

to miss lead investors and people like

elon musk

hahaha

this story just got a whole lot more

complicated and all of a sudden we go

from uh okay like twitter's here and

elon's here and it's like elon you gotta

find some fraud like if you can't find

fraud like you're gonna have to buy the

thing you know uh and now it's kind of

like

oh

did we just equal the playing field a

little bit more

methinks so and me thinks that's why the

share price is down a little over seven

percent today

and as more of these facts and

disclosures come out

keep in mind this this is only page 12

out of 84.

we're gonna have some entertainment

ahead

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