1. Short covering never happens in a stock that has low volume and is not rising unless ordered by the regulators.

2. Finra is one of the regulators that investigates illegal shorting in stocks and has all the tools to do so.

3. Finra acts on its own in investigating illegal shorting naked or otherwise.

4. Market makers who short stocks can supply as much stock as they are willing to short thus holding the price of a stock down when there few buyers in the market.

5. Stocks do not just magically move up by themselves on good news. Stocks need buyers with large amount of cash to move to the upside. Once the buying dries up the stock is moved back down by the market makers who have the short positions.

6. Short squeezes occur in shorted stocks that do forward splits. A 2 for 1 forward split doubles the shorts in stock. For example if a stock has one million shorts and declares a two for one split then the short is now increased to 2 million shares. This is the best scenario to happen to a heavely shorted stock.

7. Short squeezes occur when unexpected good news and heavy buying come into play in a stock that has a large short position.

8. Short squeezes occur when regulators force the shorts to cover their illegal positions.

9. A stock with low volume will go nowhere. It needs buyers.