I agree naked shorting happens but it is illegal regardless. Making a market doesn't include dumping millions of shares to create a short position and cover, that is manipulation.
As for what you claim about them selling shares then getting them from the company, why would they even do that? That would be illegal. Why would these companies who makes tens of millions of dollar help GYOG perpetrate a scam by selling their shares for them? What would they get out of it? That theory is absolutely ridiculous.