That is not what naked means. Naked short sales are short sales without an executed or agreed upon borrow between the borrower and broker. You are referring to short interest higher than 100% of the float (total shares in circulation), which is mundane because it happens organically when a lot of people want to short the same thing and start borrowing shares which were already sold short.
It seems entirely unsurprising to me that a brick and mortar retailer selling digital goods in the middle of a pandemic would be a hot short target for many different funds, thereby organically pushing short interest over 100%.
It seems entirely unsurprising to me that a brick and mortar retailer selling digital goods in the middle of a pandemic would be a hot short target for many different funds, thereby organically pushing short interest over 100%.