So you agree there are shorts-Nope!
Any MM involved in creating a Short position post suspension, resulting in a FTD, would be mugged by FINRA. It is illegal to short a non-marginable stock. By definition, all greys are non-marginable.
Which leaves before suspension. Before suspension there was a "Short Interest" of 69K shares. Where "Short Interest" could be actual Short positions, or an artifact of Rules 200-203. Any FTDs generated by the 69K shares would have a max of 35 days to cover. On 30-Oct-12, Short Interest in KMAG was 0 shares. All Short Interest prior to the suspension was covered.
The great KMAG NSS conspiracy claims there were 200M NSS out there before the suspension. In which case the short interest before suspension should've been 200M with KMAG on a threshold list for FTDs. With 35 days max to cover. Instead there were only 69K potential shares max, which went to 0 end of October.
Then the evolving conspiracy claims the 200M is hidden. Well no, a Short trade reported to SHO would show up in the Short Interest data. Next comes the claim they weren't reported to SHO. Then by definition the trade never occurred or even existed. A trade is not a trade until reported to SHO. From there the wheels come off the conspiracy with claims FINRA has been bribed by the evil NSS Germans, and has secret Short Interest lists.