Naked Shorts Eye Internet Japan

Somebody really, really doesn't like Internet Initiative Japan(IIJI Quote).

And whoever it is took a sudden dislike to the company last month. Short interest on the Tokyo-based company's American Depository Shares, which are traded on Nasdaq, soared nearly 1,500% to 1,769,292 shares in June from 90,539 shares in May, according to the exchange.

Naturally, volume on the stock rocketed as well. In May, some 91,000 shares of IIJ traded on average, but in June the figure surged to an average of 6,426,225 shares a day. Even in the early days of July, a normally sleepy time for trading as U.S. investors extend the Fourth of July weekend, trading has remained above a million shares a day as the stock has hovered between $7 and $8. ...