Jetmek,
Your argument assumes perfect knowledge and perfect action. But real markets—and real people—don’t work that way.
You say “there is NO risk to exposing a real naked short position.” That’s false. There’s political risk, legal risk, and reputational risk if the exposure creates friction with intermediaries, disrupts internal settlement, or unearths unintended consequences.
You also say “Linda would totally be aware.” How? Most synthetic short positions don’t show up at the TA or on the cap table. They’re buried in prime broker omnibus accounts and only surface during mandatory reconciliation—like with a preferred share dividend. That’s why it’s used: because no one can just “check” for synthetics without triggering a system-wide audit.
So no—it’s not fear of disproving a fantasy. It’s fear of confirming a reality the system isn’t ready to handle.
And until that system is tested, claims of “nothing there” are just as speculative as claims that something is.
—Krombacher
Market Data 
Markets 
AI
