Plastic2Oil Inc (PTOI)

[Johnik]

More reasons the NSS fairy tale is just that.

This is well-outside my area of expertise, but the SEC does not appear to share your view that naked short selling is a "fairy tale." Here's a recent example, from last month:

The SEC’s order finds that Bell improperly relied on the market maker exception in his line of business that essentially loaned large amounts of hard-to-borrow stock to broker-dealers, who then provided their customers with locates on those shares and lucrative stock loans of those shares. The customers then sold short certain securities that they may not have otherwise been able to without Bell’s participation. However, because the stock being provided by Bell was not truly available for delivery to the broker-dealers or their short selling customers, Bell actually was effecting illegal “naked” short sales.

http://sec.gov/news/press/2011/2011-264.htm

You can find other examples if you dig through SEC releases.

I don't doubt that naked short selling is sometimes used as a scapegoat for PPS decline, but it does appear to be a real phenomenon, at least in the eyes of the SEC.