If it was a market maker Yes, it is legal. If a civilian naked short? no.
Does NASD care? Looks like not much is put into investigations. Anyone with the oversight ability knows exactly what to look for. Finding a Naked is easy. Will they bother. Most likely no
I thought there was an executive order covering companies working on the COVID-19 virus. The order allowed prosecution of people manipulating those stock prices. Of course my memory is not as good as it used to be. Does anyone have any knowledge of this?