Yes, look at how they went after the "naked short" problem.
OMFreakingG!!! Here comes the "naked short" conspiracy theory again. How many times over the past few years have we had to read this "naked short" stuff while S & L was dumping 100s of millions of shares onto the market?
Here is a fair review of naked shorting from Forbes.com. Keep an eye on any discovery in the Overstock case. IMHO, you are not going to find a substantial number of naked shorts on the books of the prime brokerages. (I could be wrong, but I was very frustrated by reading all that naked short stuff while the OS grew and grew)
Also IMHO, Overstock is a (legitimate) short because the CEO is more concerned with the stock price than he is with the day to day operations of his company. JT's "oh come on!" reaction a few months ago was a little over the top, but just about right. He reacted, and then got back to work.