you keep saying this 'naked shorts' - I don't think it means what you think it means.

There are no 'naked' shorts in bitcoin, it comes from a time when there was a gap of some days between trade and settlement, when the very brave could 'sell' without having borrowed the underlying and have a few days to rebuy before the books were reconciled. I don't know of any bitcoin exchange that allows you to sell without owning or borrowing (against collateral that would be called).

I suppose if your tinhat is especially shiny you might think the house itself plays that game...