'Naked Shorting' made up by SEC money launderers AFTER 9/11:

It was actually Jaes Dale Davidson founder of CIA and City of London connected Agora Inc and NTU or National Taxpayers Union who ran penny stock frauds right under the SEC's noses in Alexandria,Virginia and Baltimore,Maryland for decades who invented or popularizred the term 'naked short selling' to distracrt fro his illegal ups and dumps of penny stocks including the biotech fraud Endovasc that ripped  me off.This  began in 2002 with Genemax and Endovasc penny stock frauds
and went on to include any many more such as USXP and CKX Diaonds that a r. Bud Burrell who threatened y life was involved with.Patrick Byrne took over prootion of the fradulent operation fro Davidson in 2005 with a big ad in the Washington Post denouncing 'naked short selling' or counterfeitting of shares of his Oversytock.com fraud and went on to clai Novastar Financial or NFI PONZI SCAM AND HOUSING LOAN SHARK  OPERATION WAS A VICTIM
OF 'NAKED SHORT SELLING' AS WELL EVEN THOUGH IT PAID DIVIDENDS AND NONE OF ITS SHAREHOLDERS VER CLAIED THEY DIDN'T RECEIVE THEIR DIVIDENDS,PROVING PATRICK BYRNE WHO WAS ALSO AKING ONEY RENTING HIS SHARES OUT FOR REAL SHORT SELLING WAS COMMITTING MASSIVE SEC AND FBI PROTECTED FRAUD !

In July of 2001, the company won a historic 389 million $ non-appealable, RICO judgment against Select Capital Advisers, a company whose actions were later characterized as “naked shorting” once this term came into common parlance. Shorting of a stock is legal. It involves selling shares you do not own with the intention of buying them back at some point in the future, after locating a source from where to buy them. Naked shorting, very simply, is shorting, but without ever locating the source to buy back from at a later time, and with never any intention to do the same. This practice has clearly been deemed illegal by the SEC, but unfortunately, it has never enforced its own rules. The recent revoking of the “Grandfather Clause” (effective October 15, 2007) under Regulation SHO appears to be its first attempt to curb naked shorting, although this appears to have the effect of “closing the stable door after the horse has bolted”.

https://www.sec.gov/comments/s7-08-09/s70809-382a.pdf