They will still NSS even though it is a no no. If they cannot find real shares to cover later, they will make deals with other MM's. Kind of the buddy system. When a MM fails to deliver or cover within the required period, MM's start shifting positions to create a new settlement date extending out for as long as they need to cover in their desired range.
Setting your high limit is a deterrent but when the MM's naked short or borrow from other brokers, you are outgunned.
BTW, anytime someone tells you to set a high limit sell, they are probably selling below you. I used to believe the bs too until I realized I was the only one without a chair when the music stopped.
IMO / Do DD / GLTY Markeddy
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