Yes “naked shorting” is a technical failure that hasn’t been a real problem in forever, but us frequently cited by shady CEOs as cover for why their stock price fell. Patrick Byrnes is one famous example.
From this very article: “ Alan Sporn, former president and major shareholder of OTC bulletin board company Trident Systems, is suing a group of brokers who, he claims, utilized a number of techniques, including the stock borrow program, to undermine the price of Trident's stock. This attack on the value of the company's stock virtually destroyed the company, both in terms of raising capital for growth, and in depressing the value of the shareholders' investments to virtually nothing, claims Sporn.”
Sporn case was so weak the judge ruled for sanctions against him and he had to negotiate an agreement to avoid being stuck with defendants court costs.
From this very article: “ Alan Sporn, former president and major shareholder of OTC bulletin board company Trident Systems, is suing a group of brokers who, he claims, utilized a number of techniques, including the stock borrow program, to undermine the price of Trident's stock. This attack on the value of the company's stock virtually destroyed the company, both in terms of raising capital for growth, and in depressing the value of the shareholders' investments to virtually nothing, claims Sporn.”
Sporn case was so weak the judge ruled for sanctions against him and he had to negotiate an agreement to avoid being stuck with defendants court costs.
https://www.siliconinvestor.com/readmsg.aspx?msgid=21558818