Some context: These events date back to 2006. Prior to the financial crisis. There've been major changes to the industry and SEC regulations since. Wall Street

Some context: These events date back to 2006. Prior to the financial crisis. There've been major changes to the industry and SEC regulations since. Wall Street still has bad actors and has a lot to fix but short selling looks very different today. The SEC added multiple rule amendments to Regulation SHO over the past 10 years to address fails to deliver and restrict abusive short selling. The SEC claims high double digit declines in FTD rates. Naked shorting feels like it has dropped off the radar compared to something like Reg NMS. Knight Capital had many problems and no longer exists. The link story involves a penny-cap mobile chipmaker company suddenly merging with an online travel agency...This company then does a 1-1000 reverse stock split...Around the same time, a clearing agency freezes the company's stock, hinting at potential violations of federal/state law. For those not familiar with equities, these events are bad. The stock is likely going down. Shareholders will lose money whether or not naked short selling took place. Knight Cap may have engaged in fraud here, I don’t know, but this guy for sure bought a bad stock. Wiki on Regulation SHO: https://en.wikipedia.org/wiki/Naked_short_selling#Regulation_SHO https://en.wikipedia.org/wiki/Naked_short_selling#Regulation... SEC Short Sales website has rules, info and data (warning gov site and painfully dry reading): https://www.sec.gov/spotlight/shortsales.shtml https://www.sec.gov/spotlight/shortsales.shtml