Digital Brand Media and Marketing Group Inc (DBMM)

[Stock_Barber]

3. Shorters do naked shorts all the time!

No, they don’t.

Naked short is when the short-seller fails to deliver a share to the buyer. It is illegal to do knowingly, but as it can still happen under some circumstances, proving intent can be hard.

It’s easy to compare a number of fails vs the total short position – if shorts were doing it all the time, there would have to be a lot of fails, especially since a “naked short” position can last at most a few days, because when the fail happens, the failing party is told to immediately cure it. So for a short position of 140%, there would have to be daily fails in tens of percents of the float. Shorts take on a lot (much more than longs) of risk already, taking on this kind of legal risk for no gain would be beyond idiotic.

https://www.nakedcapitalism.com/2021/02/more-on-the-gamestop-short-squeeze-gme-myths-busted.html