then that wouldn't be naked shorting. An MM can short naked to facilitate a trade for a short period of time. But having a locate and shorting is shorting. When they sell the living snot out of something, then pass the fails around like kited checks, that's naked shorting. It deprives the real hollders of voting rights, it disrupts the supply/demand dynamics of the market, and it is illegal. Take a look at NGAS. Last week, traders load up on energy plays because of Ernesto. Then, on Sunday, Ernie turns north. Obviously, momo guys dump energy stocks. But hey, they're going down, so why not make real jing? The stock shows up on SHO today. They shorted it, couldn't get enough shares, so they naked shorted it, and the SEC and DTCC just watch. If I'm sitting' here in my skivvies and can see it...... Come on. They did it to vonage, NYX, you can see if you watch SHO daily. These deals aren't systemic like Sedona, Tasr, Ostk, where the companies were targeted for destruction. Watch the SHO list everyday. There is a good chance to make an honest buck screwing dishonest people. Remember, most names don't show because of grandfathering. But if you see really large short positions, that stock is probably naked shorted pre 1/05