On the contrary. Whether a company I naked short is a scam or not, I'm doing an investor a favor: He or she is getting shares at a lower price than they would have been able to get without my presence.
If the company is a legitimate, money-generating enterprise, then the investor earns a higher return on their capital than they would have otherwised earned without the presence of short sellers ("naked" or otherwise).
And if, as is so often the case, the company in question is a pump'n'dump scam, then investors lose a little less than they would have lost had there been no short sellers involved.
Unfortunately, when faced with lower prices, too many naive investors will just increase the number of shares they'll buy in these dung heaps. So you get a lot of goofballs left holding certificates for tens of millions of shares that are worth...
zero.
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