It seems like naked shorting should be easier to prove than what it is.
Agreed. If I made naked calls or shorts in my Roth IRA, the govt would have a conniption fit and revoke my privileges.
what appears to be happening is rehypothecation which is multiple shorts ‘borrowing’ the same shares over and over. So, say, 10,000 shares are in the lending pool an they get lent 10x over, so the 10k turns into 100k. This is about to blow up in a lot of people’s faces as one of the biggest victims is $DJT which is rolling out a token (1 token per 1 share) which is really a way to track legitimate shares. The fake shareholders are about to experience the music stopping.