If you're short-selling, naked or not, GS is not the party you're selling to. GS is the broker. They execute the sale on your behalf, because they have access t

If you're short-selling, naked or not, GS is not the party you're selling to. GS is the broker. They execute the sale on your behalf, because they have access to the market. The $10 comes from two other third-parties that GS finds on the market.