If a stock is fundamentally worthless (like BCIT) then the size of any naked short position is irrelevant. It could be two TRILLION shares, and it'd still be the right position for an investor to have taken.
"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