There's not hundreds of millions naked shorts. There's a daily volume of short term shorting going on all the time, which is why you see sudden mini raids. You have been watching too many movies if you think the only shorting is longer term short positions. At a time like now, when the SP has moved up 20% in 2 days, once the buying interest dies down a little, they start selling short and take down the SP. This can be a couple of pennies or they can get a little more aggressive and use more shares and get it back down 10-15%. It is all dictated by the buying interest.