Trader59, I looked into that Houston Law Review article:
"James W. Christian, Robert Shapiro & John-Paul Whalen, Naked Short Selling: How Exposed Are Investors?, 43 Hous. L. Rev. 1033 (2006)."
Rather than plunge into all of that, plus the views of the University of Oklahoma professor cited by Forbes, I'll dismiss that naked shorting babel with this quote: "There’s no example of a company that’s a good solid business, where we can explain its valuation and, only with naked short-selling, can we then explain its price drop, ”J.B. Heaton, the managing member of One Hat Research."