Well according to Bud Burrell, if they can put the company out of business they do not have to produce the shares nor do they have to pay any tax on the proceeds of the sales they make on the shares that they do not own.

This sounds like quite a scam to me, and does not give (what could be a great company) much of a chance to succeed if the become targets of the short sellers. This applies to large corporations as well as smaller companies. (Bear Stearns down to companies like ours).

http://www.financialsense.com/fsn/ma...

Interview with Bud Burrell July 12 2008

This link was posted by hgs225 a couple of days ago and is sure an interesting listen.