Maybe I'm misunderstanding...
But isn't the difference between short selling and naked short selling the difference between actually having something to sell (or a contract on a future purchase) versus selling something you don't have at all with the hopes that you'll be able to buy it in the future at a lower price in order to cover your obligations?
It seems if you are able to flood the market with something that doesn't exist, the price will almost certainly go down if the scale is large enough, but the last person to buy is the one left holding the bag -- kinda like a giant ponzie scheme.
Biting the hand that feeds IT
