Eric
Not necessarily, No. From what understand if they get into a bad position there is a stock borrow program at the good old DTCC.
A responsible MM would not get themselves into this situation.
Whether MM's are the culprits or the brokers or the hedge funds is up for debate.
Thats the trouble no information, no transparency.
GB
Disclaimer - I am not a basher, disgruntled ex-employee, hedge fund employee etc etc. I am a regular guy who is fed up with people being scammed.