EF Hutton is looking to raise $125 million via its SPAC, according to a filing. It is targeting firms in the consumer and retail industries.
Iceberg Research said it won't maintain its short position very long as Trump is likely to "very aggressively" promote the site.
DWAC's prospectus said 11 anchor investors would buy up to 91.3% of the shares offered, potentially making only 9.7% available to the public.
Bloomberg estimates Trump and any of his partners will own a combined $4.8 billion stake in the post-merger company based on the DWAC stock price.
DWAC shares rocketed 357% on Thursday after the company announced it was taking former US President Donald Trump's media startup public.