People keep referring to a huge "naked short" position. Is it documented that there is naked shorting, in other words shorting shares without borrowing them? Or are people using this term to mean that there are many shares which have been borrowed and are being shorted, in accordance with the law? If there is a huge short position, shares borrowed and shorted as is perfectly legal, this is actually a positive for the stock, as any news that makes this stock go up will result in panic buying by short sellers, which will further fuel a run up.
