Actually TR, short-selling is also called "going naked", and means the same thing. There is no limit to your risk when going naked, in theory. The problem does lie with the MMs and "deep pocket" organizations that can manipulate the share price with large blocks of selling, or buying. When they have no intention of buying the shares back, and worst of all are not forced to by those who are suppose to regulate their actions, then we have what I think they are calling "failure to deliver".
We are talking the same thing, but anytime you sell short you are going naked, unless you have some kind of hedge or option to limit your losses. Such as aussie's covered call option strategy.
You are right, what we are talking about is the intention of never buying back and the check and balance system that has broken. At the expense of small investors and companies that are targeted, often times to their death, deserved or not.
