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Can an ETF collapse - Simon

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Contributor
Sasha Naryshkine posted this link http://www.boganassociates.com/whitepapers.html on tickertalk yesterday. The article relates to naked short selling of the underlying shares of EFT's on NYSE resulting in actual cases of particular ETF's being sold short by several hundred percent of all units in existance. Does the absence of naked selling on JSE mean that JSE listed EFT's are completely protected from this risk factor ? I hope that Simon the big EFT fan can comment.
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Valued Contributor
ya, lack of naked shorting mitigates the issue .. but also more generally we have largely vinalla ETF's, the US has tons of very exotic ETF's .. such as ETF's that are inverse of index, or twice inverse etc ..
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