If you go to the Nasdaq site and read about the SHO list, it explains it. It is a pilot program implemented by the Nasdaq to help reign in naked shorting. Supposedly, companies in the program (like HYRF) when shorted , the program gives a time frame for the shares to be procured to cover the short position, or at the very least, they must demonstrate that the shares are available on the market to cover with. So, yes, the program is meant to help with naked shorting. You should go to the site and read...it is informative.
jc