There is really only one simple concept needed to understand what the SEC cares about. When a big hedge fund is selling a stock short, they can do so without e

There is really only one simple concept needed to understand what the SEC cares about. When a big hedge fund is selling a stock short, they can do so without even borrowing it. As a result, the buyer ends up not owning it and the stock fails to deliver - called a fail. There are a lot of easy penalities that could be applied here. Reprice based on lowest price in intervening period prior to deliver. Provide a 10% rebate per day if not delivered T+3, up to perhaps a 200% rebate. Etc. But instead, nothing happens, the fail to deliver just continues. I took a look at Gamestop on the fail to deliver list. It's been there forever. I don't trade, but the whole fail to deliver game seems rotten. https://en.wikipedia.org/wiki/Failure_to_deliver https://en.wikipedia.org/wiki/Failure_to_deliver