Why is that the implication here. The naked shorts don't use the available borrow shares in their naked shorts by choice, they avoid the significant interest charges involved to borrow shares and they also keep a level of secrecy about who they are by avoiding the trails created by the borrow.
No trail?
So they took the cash, did not deliver the shares and left no trail.
Do you think the party that paid for the shares is not a tad concerned?
Mmm...Before Dodd Franks , Volcker Rule and Mifid 2 & Mifir maybe ... but since those directives not a single chance , so Im afraid you are talking with authority about something you know fk all about.