Naked shorting squeezes.Let's just take a market maker like Knight that is naked shorting like it's going out of style.They hope that they have to pay barely anything to anyone when their prediction of CMKX going under takes place.Then when a .0001 penny stock reverse splits every few months like USCI does,they reverse split it at 1000-1 or 10,000-1 where that day it's at a dime or a dollar and a few days later it's back to .0001 again.By reverse splitting,the companies doing it are the best friends of the naked shorting market makers and are probably in cahoots with them.The fix is in and the shareholders are the odd man out.Maybe the only way someone like Knight could get screwed is if a company had a hostile takeover where somehow the owners in on the fix lost controling interest where a planned reverse split never takes place and things start looking up for that company with positive P.R's.Couldn't that desimate Knight?Knight seems to be on shakey ground financially,has anyone heard of a market maker that naked shorted alot not having any money reserves to cough up if the stock goes up?Who would have thought Arthur Anderson accounting would have gone kaput overnight due to the Enron debacle,it was a bellweather in the accounting industry,could Knight be next?
Did anyone get in on the class action suit against Knight on Raging Bull awhile back?Will you get anything if you win the suit?