Any market analyst will tell you that naked short selling contributed significantly to the financial crisis on Wall Street and is prevalent in low priced stocks. I had a recent discussion with a close friend of Pat Byrne, the founder of Overstock. Pat has been on a crusade to try to force the SEC to stop the practice which is primarily done by short funds off shore...We discussed the book "The Midas Touch" which analyzes naked short selling and briefly mentions Jag Media Holdings which became CardioGenics as a result of a reverse merger. All of the former officiers of JAG were convinced there was at least a 250 million naked short position in JAG. If correct this would translate into a 25 million position in Cardio...Pat's friend indicated if Cardio moved into the 70-80 cent price range he believed the short funds, through a third party, would contact the investors who owned the 12 million shares and offer to buy the shares at a higher price. If they agreed on a one dollar price, which would represent over a 900 percent profit, the investors would place a order on the Warsaw Exchange to sell the 12 million shares at 1.00. The short funds would purchase the 12 million shares along with all other shares offered up to the 1.00 price.... This technique, if successful, would allow the short funds to cover a significant portion of their short position without incurring any losses.... An unanswered question is whether WDM Capital and the other investors, who IMO are convinced of the future potential of CardioGenics, would agree to accept the deal.