There are pleanty of shares of ALL stocks. Why would anyone naked short ANYTHING? The MM's do it because it allows them to suppress the stock in periods of high demand. The rules for MM's are different when it comes to nakes shorts. They are allowed to do it "to maintain market liquidity", but abuse this priviledge regularly. If you use a little "common sense" I'm sure you could come up with a few reasons they would do it, seeing how you're so smart and all.
my common sense tells me you shouldn't equate 1 person in china to 1 share of a micro penny stock, well unless if you are not bright.. if that is the case.. carry on.