The MM knows not to hold the Naked Shorts as that would be in violation of the 3 day settlement. Instead the MM trades ACTC on the manual pink sheets instead of the electronic OTC BB where ACTC is listed. The manual entry pink sheets is a legal option and allows the MM cloaking operation to use naked shorting to essential kill any rally and cover easily within the 3 days and often within the same day. With an easy $0.005 to $0.01 differential between Naked Selling and Covered buying on millions of naked shorted per month the MM's take is in the order of +$1 to $2 mil per year. Very profitable indeed. The last thing that the MM wants is for ACTC to leave and be listed on the Nasdaq. By continuous daily naked shorting all rallies will be killed and lead to the highest ratio req'd to meet the $4 minimum. Since naked shorting is infinite in supply because the shares do not exist it is difficult to imagine what super news rally would be required to break the strangle hold of the MM.
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