Cytodyn Inc (CYDY)

[ohm20]

If those shares were already borrowed out and a sell order was made the broker would have to cover from another source or those would become naked. No notice would be given to the shareholder. Now there is what is called phantom shares which are naked shorts that never become covered. It is problematic as those phantom shares act in the marketplace as real shares and are dilutive. The SEC should be prosecuting every single case of this happening but they're in bed with the perpetrators.

https://www.cato.org/sites/cato.org/files/serials/files/regulation/2008/2/v31n1-7.pdf