We're not talking about cars. We're talking about securities, which are ultimately intangible.
If the security has value, or if the management of the company is busily creating value for shareholders, then investors needn't worry about "naked short sellers".
"Naked short sellers" are not a "cause". We're an "effect". When we see a company that's being wrecked from within, or when we recognize a security that is absurdly over-valued, we short it. And then wait for the fundamentals to play themselves out. We don't "harm" anyone. But if/when our analysis of a situation is correct, we make money.
"The penny stock investor may be the most dangerous creature in the investment world, at least to himself.[...]His hypocrisy becomes most apparent when he then blames his losses on the greed of others." Robert C. Dugan, Director - JRM Capital