The SEC stated that in order not to crash the market they only put stipulations to ease naked shorting but not to stop it completely, so yeah they know stocks are being naked shorted $DBMM.
"TA cant confirm a naked short position ...THAT MADE ME LOL!!!!"
The TAs job is to account for all the shares. If there were naked shorts then of course they wouldnt know who the shorter was BUT someone had to buy those shares. Those shares would show up in someones valid account and when a count is made there would be an overage in shares because there would be no negatives in any valid account to equalize the equation.
The CASE is NOT even about naked shorting. That was made up and has taken on a life of its own.
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