I will trust the professional that worked for/with SEC/FINRA that's stated hedgies hide the naked shorting various ways.
ProfessionalS Lawyers doing a case for the SEC if I remember correctly.
Here are there credentials! (See below)
Go DBMM
"SEC Brings “Naked Short Selling” Case (google this title.)
Jamie Lacy is an associate in Winstead’s Securities Litigation & Enforcement, White-Collar Defense, and Business Litigation Practice Groups. Jamie represents public and private companies, hedge funds, private equity funds, asset managers, broker-dealers, registered investment advisers, officers and directors, registered persons, and other institutions in government investigations, securities law enforcement and litigation, and FINRA arbitration
Toby Galloway is Co-Chair of Winstead's Securities Litigation & Enforcement Practice Group. He also practices in the areas of white-collar defense, governmental & internal investigations, and business litigation. Before developing his private practice, he served as an attorney with the United States Securities and Exchange Commission, in roles of increasing responsibility, for more than 11 years.