There is something that can be done to put an end to the naked shorts - I have done this in the past. Contact your broker and ask them to deliver your stock in the form of a certificate for you to take into your possession. This reduces the amount of stock held by the broker to be loaned for shorting. It cost me about $20 to get my shares from my broker in the past.
I guess this is an investor controlled form of custody trading - not sure though.
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