MM's make money on stock spreads not killing off small public companies. I agree these stocks get shorted and sometimes very heavily; however, it's usually done by insiders or someone very close to the company who has received deep discounted or restricted shares they can do it against.
The Rhino thing wasn't a true naked short. They'd bought toxic paper from Sedona, and as part of the contract they'd agreed not to short against it. Then they went ahead and did so.
The REAL problem is toxic paper, not naked shorting.
Why would the MMs want to drive companies out of business? They depend on those companies to make their money. No trading, no profit.
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