Overstock really doesn't seem to be doing that bad. It's at $12.01 with negative earnings.
Is there really something for the SEC to do on Overstock?
Probably not, they've been struggling to push into positive earnings. To be priced at $250M market cap is likely not because of "naked shorts", but rather because of the company fundamentals.
Now if OSTK was at $0.01 and being held by a large, large naked short position, then yes- that would make sense.
If the same scenario happens to OSTK, and TSHO trades at $250M (even with negative earnings)- that would be $250M/23.2M= $10.77
So if TSHO gets no revenues, and has naked shorts, and trades at $10.77- I do not think I will be bothered too much by that.
Even if there was a huge short position, and TSHO had no positive earnings trading at $10.77 I do not think the SEC would get involved.
However, if TSHO has positive earnings, a huge naked short position, and trades at $0.10- then yes, the SEC will probably get involved.