Spongetech Delivery Systems, Inc. (fka SPNGQ)

[CYRXorbust]

How do you know failures to deliver are occurring and that Overstock's stock is being naked shorted?

Both the NYSE and NASDAQ say that it is. The SEC now requires the NYSE and NASDAQ to publish a list, updated daily, of companies whose stocks have unusually high volumes of trades that fail to deliver. The list is called the Reg SHO Threshold list, and under Reg SHO, no company should be on the list for more than 13 days: Overstock has been on the list for more than 200 days.

http://investors.overstock.com/phoenix.zhtml?c=131091&p=irol-lawsuits