You don't get the gist of the story, do you?
The mouth-breathers have claimed for years that hedge funds have been naked short selling... shorting without first making arrangements to borrow stock.
That story demonstrates that these hedge funds who engage in short selling HAVE been making arrangements to borrow shares before they short AND that they've been paying prices that may have been artificially inflated by the characters playing around in the stock-borrow game.
Not that the hedge funds in question don't have some culpability. No one forces them to engage in these transactions and if they're borrowing shares without a long-term contractual commitment for the price they pay to borrow, then they must shoulder the risk for changes in borrowed stock lease rates.
Still, it's funny that the gulliblers are the ones plastering this story all over the net. For it demonstrates what an incredible lie all these past claims of "naked short selling" have been.
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