Naked shorting is an intriguing subject...For those unfamiliar, those selling short are required to first make 'positive determination' that the shares they are selling, that they are in fact available to be borrowed. That means that theortically at least, if there are say 60,000,000 shares issued, that the absoulute maximum number of shares that could be sold short would be 60 million....in other words at most longs could be holding 120,000,000 shares of that company.....that's of course just an example and obviously it would be incredibly rare if not impossible that all 60 million issued shares would be held in margin accounts...hence 'theoretically'
Naked shorting takes place when no positive determination is made, and its not allowed.....however there is an exception.
Broker Dealers involved in genuine market making activity are allowed to naked short a stock. The rationale is that MMs provide liquidity, assuring investors that they can always buy or sell a stock irrespective of supply demand. TBIO is a stock I've held for a while and it recently went insane.....but last week and earlier it was very thinly traded. Now its gone ballistic on contract news released yesterday....the stream on Stocktwits (I'm growacet) is nuts.
Naked short data is now published daily by FINRA and you can check it out on otcshortreport.com......Naked shorting became such an issue a number of years ago that regulation SHO was adopted, making naked short interest data available on a daily basis.
EMMBF has had its share too, check it out if you want: Over the past couple days over half the volume is reported as Naked Short:
https://otcshortreport.com/?index=EMMBF&action=view