I have not trusted FINRA one bit. FINRA or Financial Institutions Regulatory Authority is the self-regulating organization for the financial institutions. They serve to protect their own. They are the ones who lobby congress and the SEC to keep the market-maker exemption for naked shorting using their liquidity argument, and then this is abused because there is no requirement to disclose naked short positions.
Frankly, at the very least, I think this exemption should be removed for companies with market caps below a certain threshold.
How would FINRA have visibility to naked short sales Poorman? Think about how shorting a stock works. NORMAL SHORTING SELLING They person or entity borrows real stock (or puts a hold on real shares) and they sells that stock. Sometime later when the price of the stock drops they buy it back at a lower price and return real shares (or take a hold off of real shares). The profit is the difference in what they sold the borrowed shares and what they bought them back at. If the price goes up they loose money because they have to buy back the borrowed shares that were sold at a higher price. NAKED SHORT SELLING In this case the short seller sells stock that they don't really have, selling bogus shares if you will. Not sure how FINRA would have visibility to this since would only show up as share sales. I am guessing they probably have data on shares that were borrowed and that is where the 13 million shares comes from. If you can explain how FINRA estimates would include naked short shares I am all ears.