Yep. I found it interesting to note that the SEC finally started referring to this type of shorting as "naked" rather than naked. This is typical of all the so called NSS cases I've seen. Funders and insiders shorting against existing paper or instruments.
"Spiegel, after agreeing to invest in three PIPE transactions, sold short the issuer’s stock through “naked” short sales in Canada."
"the covering transactions were not done with open market shares because the hedge fund was on both sides of the trades and covered the short positions with its PIPE shares"
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