Redmoki,I don't think any rule exists that could prevent that...

Redmoki,

I don't think any rule exists that could prevent that scenario. I guess the thing is that currently the people that short the bejesus out of stocks have no long term interest in the stocks so it is not an issue.

Also because this manure is undisclosed it probably wouldn't be immediately clear that the entity making the takeover was behind the shorting. Thats why our market is such a cowboy market (not just the shorting, the insider trading as well).