Anyone familiar with naked shorting recognized the pattern on the Birch Mountain stock chart. Coupled with the Reg Sho and the Fails to Deliver list the naked short pattern is confirmed. It corrupts market integrity.
Who is behind the naked shorts?
Who has the most to gain?
Many times naked short selling is done by an entity who wants to take-over another entity and not have to pay fair market price. Pummeling a targets' stock into the ground makes the target desperate and cheap to takeover. Often naked short selling is used as a tactic in conjunction with death spiral toxic financing.
Here is a 5 part series on how it's done: