in my opinion they have to report the numbers of shares they hold correct? if naked short sales are illegal and they have shoirted naked 50 million i would think they would have to cover regardless since there is gonna be an audit of outstanding shares...i have never been through one of these so its just how i read the pr but it makes sense to me.
"The shareholders of record will be identified by the company’s transfer agent through a shareholder and shareholding audit conducted by the company’s transfer agent correcting any anomalies. This will identify and locate all shareholders, and be correlated against the known issued shares of the company"