I wouldn't say they don't need to cover. It's just that they no longer can from what I've read. They are stuck. Crappy position to be in. Caught in a trap. I like that better than you do all this work and the bastards cover before you can bring litigation. You still can bring it, but nicer when they are still breaking the law.

"The company must obtain a new CUSIP number for the securities subject to the reverse stock split."

From Rory's shareholder letter...

Many experts agree that the smaller the public float, the more difficult it is to short stock. We’ve seen a number of companies adopt this strategy as part of their plan to address illegal naked short selling.

Read the bottom of JR's post.

In addition to all of that, some interesting things happen sometimes during a RS including the sp going wild. Not always, but sometimes.

Did I mentioned I'm a huge fan of new CUSIP numbers?

Don't forget a dividend as a nice tool to bring the pain as well. All Verb would need to do is provide a coupon, gift card, etc for Market. It would force the hand. Those holding naked shares unknowingly will be looking for their reward. Brokers will need to make it right.