i don't believe that was "naked short selling off the hook yesterday" i believe it was shares coming from someone at RIGH forsome purpose, BCAP or whatever. but if i did believe it was naked short selling, setting a limit wouldnt help by definition naked short sellers aren't borrwing anybodys shares they are selling shares they don't own hoping to be able to buy back cheaper in tine to settle before being caught.
my broker notifies me if they want to short my shars but not all do. anyway these are the pinks and the rules are often ignored.
but setting a high sell limit on shares wont stop NAKED shorting period.