The broker still records the position as short, even if the shares are not located. This means that on settlement day, the short position is counted just like every other short position. So naked shorts ARE counted in the official exchange-reported short interest. 15/
A few comments regarding $AMC short float fiasco today - first of all, we *never* reported short float of 40%. We have been reporting 18.84% all day. There is a screencap circulating that shows 40% but it is a photoshopped fake. 1/
Let's talk about naked shorts. As a review, a non-naked short is when I borrow shares and then immediately sell, intending to buy back in the future when the price drops. In order to do this, shares must be located to borrow. 13/
A naked short is when somebody borrows shares but the shares are never located. This is the source of 'synthetic' shares people talk about. The thing is, this short position is still on the books as a short position. 14/