"His story was that he was keeping the price down and thus protecting the investing public from getting ripped off for even larget money. "

You seem to care more about sticking it to shorty than actually having a rational market and/or protecting other unsuspecting investors. So much so that you followed Allied Capital into oblivion.

Its a sad fact that many retail investors confuse old GM and new GM stock and combined with momentum traders who drive up the stock price on new GM news gets more and more retail investors to lose $$.

I seriously doubt anybody was printing millions naked short selling GM. I think Medchal posted the names of several companies that he followed in bankruptcy that traded in a similar fashion to GM even prior to the stricter shorting laws.