https://www.sec.gov/comments/s7-08-09/s70809-407a.pdf Related: The Counterfeiting of Shares of Fannie Mae and Freddie Mac A. Counterfeiting Stocks Through Electronic Delivery Naked short selling is cute terminology developed by Wall Street to confuse the fact that this is simply a method of counterfeiting shares of U.S. publicly traded companies. At a speech at the Mayflower Hotel in Washington D.C. on November 16, 2007, former SEC Chairman Harvey Pitt stated, ―Phantom shares created by naked shorting are analogous to counterfeit money.

A well known fact for SEC from decades.