You need to understand the process of shorting...
Post# of 15624
To short a stock it is borrowed from the mm's inventory...
IT is then sold at a price and then bought back when it goes down..
The stock (shares are to then be returned to the invetory)
In naked shorting the stock is never borrowed or the same shares are shorted over and over.
Every trade is reported and hence the spike in volume.
With naked shorting, no shares are ever borrowed, massive amounts of trades go through which have the effect of diluting a stocks worth.
The SEC created a regulation called REG SHO back in 2005-6 to deal with this crisis.
But they never enforce it and so it goes on and again this is not what is happenign with owcp at all...
THis is pure mm fun and games as I stated in a previous post...
OH and NAKED SHORTING IS NOT AND NEVER HAS BEEN LEGAL UNDER ANY CONDITIONS>>>THE SEC REFUSES TO ENFORCE THEIR OWN RULES AND THAT"S WHY IT GOES ON>