I'm not arguing that, what I took issue with is you saying that the dollar amount of the shorts is minimal to the total dollar volume for the day. It is minimal unless your company happens to make up a good portion of the shorted (naked or otherwise) volume for that day. Then it's an issue.
If a company is consitently shorted it may fly under the radar because the actual dollar amount is small. The end result is the comany cannot raise capital from banks or from selling stock. It does eventually lead to the downfall of the company. It's a short selling death spiral.