A few years back when protests mounted against naked shorting, an SEC spokeswoman conceded that it was illegal, but maintained that it was nevertheless "healthy" for the market. That is why the practice will never be investigated or restricted in any way. There would have to be a lot of it occurring now with SKUL because the eps report in no way justifies this kind of a drop. The shorts cannot drive a stock to zero however if it is producing positive eps and has no need to use its stock for borrowing or raising capital in any way. SKUL has no long term debt and $1.04 reduced eps estimate 2012 per share works out to over $28 million in net earnings. So even if they could drive it to zero by shorting hundreds of millions of non existent shares they could not bankrupt the company. Worth keeping in mind. This is now an incredible value, IMO. Doesn't mean it won't go lower, just that it becomes an even more incredible value if it does, If they beat that $1.04, anyone who shorts here will be in big trouble if he hasn't covered by then.