First off, I'd take the word of someone making a living off the "get shorty" fairy tale with a salt mine.
Secondly, what he's describing is "shorting against the box," where a lender knows they're getting shares from a conversion of a note and they go ahead and sell "early." It's against the law to do that, too, unless the lending agreement permits it, and it will absolutely show up as a failure to deliver and get reported if a share isn't delivered to the buyer within 3 days. But note this: It's dilution from an agreement the company itself entered into, and whether they sell early or not, those shares are going into the O/S and float.
There is no huge open naked short on this stock. That's a fairy tale being told by the company to divert attention away from their horrible business performance and by the con artist pumpers who want to flip the stock for a profit. It's just a lie.
News 
Market Data 
Discover 
