it doesnt. that's the point. the article you quoted was a specific type of shorting called "shorting the PIPE". they shorted shares they were going to receive in a private placement. it happens all the time.
there is a night and day difference between what happened there and your paranoid delusions of someone naked shorting sljb to death. the only reason the price on this stinker is going down is that management needs to be put in jail for fraud.
That is not true naked short selling. And no one was charged with naked short selling. The hedge fund was charged with insider trading for selling prior to completing their private placement. The broker dealer was charged with inadequate supervision.
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