Stolen from Superstonk:
"Naked short positions are never closed and the hedge funds/market makers(?) who shorted the companies into obvilion will never have to close their shorts. This is tax evation. They should pay taxes on their winnings.
Instead they can use it for tax free collateral and siphon even more money out of the hands of retail investors by printing naked shorts until companies go bankrupt. "Most sophisticated investers" 😄
Once again, the idiots at Superstonk are spewing bullshit.
A short that is never covered has no tax implication. It is not tax evasion.
Even the IRS would say that there is no basis for a tax.
Also, you can't use a short for "collateral." Just more stupid bullshit.
Finally (and again), it is not the hedge funds that naked short. It is the prime brokers, such as Goldman Sachs. They are the ones committing the fraud.
Have you read any of the DD? There's thousands of man hours worth of research that has been done.