[cturner]

    Suppose there are 100k shares issued. Some traders decide
    to naked short 50k. Actual holders of the shares say, "Oh
    crap. Half the company is for sale - better dump my shares
    while I still can." So they put up a total of 75k for
    sale.

I used to believe that, and wrote to this effect in this forum previously. However, I've since been told that you can find out in Bloomberg how many shares are out short on some exchanges, even if they're naked. Hence, my previous statements suggesting that you could inflate stocks to lower prices are probably incorrect.