What impact do "shorts", "naked shorts", and "FTDs" have on houshold investors?

Shorts, naked shorts, and FTDs can have different impacts on retail investors depending on how they have invested in a particular stock.

Short sales can lower the stock price and thus decrease the value of the stock for retail investors. If a large number of investors short a stock, it can cause the stock price to plummet, which can affect retail investors who have already invested in that stock and suffer a loss.

Naked short selling can also have negative effects on retail investors as it can increase selling pressure on the stock. It can also lead to FTDs, which means that the retail investor may not receive or be able to sell their shares in a timely manner as they have been borrowed by the broker and are not physically available. This can result in losses for retail investors.