One small cap company going after naked shorts is

One small cap company going after naked shorts is not much of a threat to them imo. Keep in mind that several small companies are joining together to not only go after naked shorts, but to share different ways to make them cover and become quite transparent to everyone (including the SEC) as to who they are. Having to cover on one small cap stock might sting them a little, but having to cover on several small cap stocks almost simultaneously might be a death blow to them.