The site is pretty big. Been around for a while. I just watched a documentary from many years back about stocks and they talk about overstock.com being a victim of naked short selling.
Pop over to deepcapture.com and see for yourself. (It's maintained by Overstock's CEO as a side project, but it seems to me that the endless stream of scathing accusations would have brought swaths of libel suits if the stuff had no basis in reality -- enough for them to defend themselves against a court shutting them down anyway.)
http://en.wikipedia.org/wiki/Overstock.com