If 30% of outstanding shares are short on a stock, and most of them are naked, then there are 30% more shares outstanding, and this is illegal (always has been, but until recently, it's enforced). You can't "issue" more shares by shorting, and you can't force to borrow from those who are long the stock. So don't fight the Fed, for good or bad they issue the rules of the play, and you just can't fight them. Pretty much the same way as you shouldn't fight the Fed.