Forbes, 16 May 2019
The SEC explicitly gave banks a green-light to naked-short securities that are subject to underwriting commitments, such as IPOs. It revealed this in a Q&A about Regulation SHO (available here, Question 1.5).
Comment: Well here is another way Wall St steals using Naked short selling You know the one that is against the Law to do. Yet whatever it takes to make money and steal it from you ITS ALLOWED.
Now as I remember the numbers it opened around $43 Morgan Stanley Naked shorted the shit out of stock and when it dropped they had the right to buy more from the company at a certain level I think it was $38 BUT did they buy it? or JUST LET IT FALL TO $30 making a quick $13 X Millions of shares while invested lost a ton They walked away with at Least $100M in profit not bad for a days work.