"Also, short selling settlements do not always follow market processes, perhaps by-passing the register with some other "informal" way of keeping control over the ownership of stock and the obligations between lenders and borrowers satisfied."
Nonsense. Process is a) borrow stock b) sell stock. The stock you sold settles normally at T+3. In part a) you have a stock lending agreement that typically provides for a borrow fee and the circumstances in which the borrow can be recalled. You have zero evidence for anything you say.
"Thirdly, we find Institutions are not only engaged in lending their shares, but also involved with buying the shares as they are sold short."
So what? Most institutions lend their stock as a matter of fiduciary duty - they get the aforementioned borrow fee in return. That's not manipulation.
People on these boards seem to think that a short sale is somehow different and nefarious in comparison to a straight sale - ignoring the fact that you have a large insto who has lost the faith and is dumping their stake which is dominating trading at the moment. It's truly bizarre.
Entia non sunt multiplicanda praeter necessitatem!
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