Yes, technically it is a "naked short" when the share is sold before the share is first borrowed or in the case here, bought beforehand. So technically it is a naked short, but it is covered amost immediately. In fact, the naked short data on this site is quite low for SFMI. There are lots of stocks out there where you'll see the daily "short" volume consistently higher than 50% of the total sales.

If you go to shortsqueeze.com link, they show that the present total number of shares short is ~180,000- which in fact probably represents the recent daily short total that hasn't been reported as covered yet. Essentially 100% of the daily shares reported short are in fact covered immediately. But since they were technically short sales, they are reported as such, even though they are probably covered even before the report comes out.