The one thing you seem to misunderstand is that if they are true naked sorts, they are not based on borrowed shares. They are never delivered to anyone, just an FTD (Failure to Deliver) Notice. These things never go through DTCC for clearing, but rather are just handed around from one BD to the next, ex-DTCC. From everything I've read, it is not quite sure that you even CAN unwind all of the true naked shorts, let alone force them to cover.
That's why folks are trying to use NOBO's to ascertain just what is real out there, to stick the brokerages with the bad paper they have been passing to support the practice.
Thus, since shares don't need to be borrowed, all you need is a hedge fund working with a BD that isn't too particular about what it passes to the next BD ex-DTCC
News 
Market Data 
Discover 
AI
