Correct, it does and is happening all around you. Tou just dont see or hear about it, because you and I dont run around in those circles
Read a very information article a while back on how its done and how it avoids the "legal" 2 days settlement. Many players need to be involved in order to make it work.
All appears "legal" in the eyes of the sec, because the dont break any known rules that the sec enforces.
Now in this case, because there are so many "so called naked shorts' and the number of steps that were taken to make it happen, there are a lot of people that were banking this never sees the light of day again. Ie. Getting off the gray market.
Now that the case is over, the sec is doing everything they can to keep this right were it is as those who would be losing many millions if it called in a huge favor.
Dont be so naive and think the sec is as clean and on the up and up. Remember the shenanigans that occurred during the housing crash and the lack of sec involvement in stepping in and stopping it.
When hundreds of millions or billions for that matter are involved you'd be surprised how often those who are paid to look out for the shenanigans or look out for the general public's best interest fail to do there job.
Every market crash, scandal can be traced back to someone who is supposed to oversee said issues doesn't do there job
This story is far from over. Could be resolved tomorrow, next week or next year. BUt it will be resolved one day.
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