Your link explains what actual naked shorting is, you should read it. It says nothing about re-lending. Naked shorting is not "re-lending", it's a very specifi

Your link explains what actual naked shorting is, you should read it. It says nothing about re-lending. Naked shorting is not "re-lending", it's a very specific technical thing where you sell the stock without owning or borrowing it at all. Naked shorting results in failure to deliver. Stock trades settle a couple of days after execution, so what it means in practice is that Alice "buys" the stock from Charlie, then 2 days later when settlement should happen and the share and money are supposed to actually change hands, Charlie goes oops I don't actually have the stock. Then the trade is undone. In effect Charlie duped Alice into a fake trade that artificially depressed the market price. It's an egregious market manipulation tactic and has nothing in common with the practice of lending or re-lending shares, in fact there is not a single share involved at all. If you fail-to-deliver enough you'll get booted by other market participants and/or the SEC.