The Hunt for the Next 10 Bagger

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Ya know, that is something I have heard people mention as a way around MM shorting their shares but in reality I don't buy it. Technically that may be true but MM's can still naked short the shares.

Naked short selling, or naked shorting, is the practice of short-selling a financial instrument without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "fail to deliver". The transaction generally remains open until the shares are acquired by the seller, or the seller's broker, allowing the trade to be settled.[1] Naked shorting is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity.[2] But it is illegal when manipulators use the practice to force stock prices down by temporarily increase the supply of stock, some people argue.[3] However, the practice is not considered abusive or illegal when utilized by market makers, if they fulfill the close-out and pre-borrow requirements, as they are not exempt.[4] It's also not illegal when there is a legitimate reason for failing in the delivery of the stock.[4]
In the United States, naked short selling is covered by various SEC regulations which prohibit the practice.[5] In 2005, "Regulation SHO" was enacted, requiring that broker-dealers have grounds to believe that shares will be available for a given stock transaction, and requiring that delivery take place within a limited time period.[4][6] As part of its response to the crisis in the North American markets in 2008, the SEC issued a temporary order restricting short-selling in the shares of 19 financial firms deemed systemically important, by reinforcing the penalties for failing to deliver the shares in time.[7] Effective September 18, 2008, amid claims that aggressive short selling had played a role in the failure of financial giant Lehman Brothers, the SEC extended and expanded the rules to remove exceptions and to cover all companies.[8][9]
Some commentators have contended that despite regulations, naked shorting is widespread and that the SEC regulations are poorly enforced. Its critics have contended that the practice is susceptible to abuse, can be damaging to targeted companies struggling to raise capital, and has led to numerous bankruptcies.[5][8][10] However, other commentators have said that the naked shorting issue is a "devil theory",[11] not a bona fide market issue and a waste of regulatory resources.[12]

http://en.wikipedia.org/wiki/Naked_short_selling