I might be wrong, but I believe naked short selling is related to the brokerage. ie. the brokerage doesn't actually possess the shares to lend to the shorter, however they are still able to lend them the "air shares", the borrower is still able to short the stock as usual, and at the end the air shares are returned to the brokerage.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.