The most important aspect of naked short selling is why it's a thing. Naked short selling is used as a weapon by short sellers. The purpose is to push down the

The most important aspect of naked short selling is why it's a thing. Naked short selling is used as a weapon by short sellers. The purpose is to push down the stock price by artificially increasing supply relative to demand, perpetuating the sell spiral. Thereby, the short sellers can further increase their profit on short sales.