Oh stop. The SEC's enforcement action against Sabby is pretty much the only thing you have to point to in the past five years or so.
Problems that did exist early in the century were fixed by Reg SHO, which was adopted in 2005 and amended in 2007 and 2011. It works quite well. It has, however, frequently been used as an excuse for the poor performance of junk penny stocks.
No man...that's not how it works...and it is certainly not counterfeit. You may as well dump on DTC and affiliate for lending out their base. Liquidity is vital in the market.