“Here’s how naked short-selling works: Imagine you travel to a small foreign island on vacation. Instead of going to an exchange office in your hotel to turn your dollars into Island Rubles, the country instead gives you a small printing press and makes you a deal: Print as many Island Rubles as you like, then on the way out of the country you can settle your account. So you take your printing press, print out gigantic quantities of Rubles and start buying goods and services. Before long, the cash you’ve churned out floods the market, and the currency’s value plummets. Do this long enough and you’ll crack the currency entirely; the loaf of bread that cost the equivalent of one American dollar the day you arrived now costs less than a cent.

With prices completely depressed, you keep printing money and buy everything of value — homes, cars, priceless works of art. You then load it all into a cargo ship and head home. On the way out of the country, you have to settle your account with the currency office. But the Island Rubles you printed are now worthless, so it takes just a handful of U.S. dollars to settle your debt. Arriving home with your cargo ship, you sell all the island riches you bought at a discount and make a fortune.”

His example, though summarized, seems awfully lot like this one right here. I don’t know if he gave credit to this author but if he didn’t, it seems that there may a case of plagiarism here.

Anon

Share prices go up and down with the economic news, so it doesn’t appear to have any negative effects.. I can understand that it dilutes their core value, but it doesn’t affect their daily price chart.

This seems familiar with your analogy above about naked short selling, but
I can’t quite grasp how this affects me, owner of their shares. Would someone please explain it to me?