"And since naked short selling is not possible..."You mean: It...

"And since naked short selling is not possible..."

You mean: It is NOT ALLOWED on the ASX. For a reality check, I ask you to have a glance at no. 7 of the original post in this thread. ASIC tried to crack down illegal naked short selling.

I have no idea how strict the mechanisms are, but when it comes down to only reporting your short selling position at eob with no technical checks intraday, one or two traders might feel the urge to illegally naked short selling in the morning and covering in the afternoon.
See for yourself if that possibly matches the trading / bot behavior we see most days.

You might also want to research "failure to deliver". There were some interesting patterns with extraordinarily high failures to deliver regarding GameStop on the US markets. (got no info if that applies for ASX as well)

For the short selling reporting in general: isn't it funny how delayed and coarse the public data is and that there are sometimes temporary big jumps in the short position data (as if the intern forgot to send the email with the Excel file and they find out three days later)?
That means, I don't trust the regulatory environment on the ASX regarding short selling 100%. There could be more transparency, more timeliness and more complete banning of short selling in general.