Trav, I have been asking the same question over the last half-year. First, assume the MMs are not in collusion with the shorters. The shorters offer to sell very small amounts, say 5000 shares below the bid. But they do this continuously. Some of us may hit the ask, but only bid occassionally. They however, continuously replace sell orders below the bid and so the price continues to go down, despite our purchases.
Should we fight this and make lots of small bids at the ask? Would it be legal? I sure wish we could find out.
Next assume the MMs are in collusion with the short sellers. Here it would be clearly illegal, IMO. Why did Nate & others have small orders that were not filled for almost 1/2 hour?
One day the illegal acts will result in punishment. We do not need/want to engage in any illegal acts. It sure would be nice to know where the line is drawn by law.