Although contraversial, some believe naked shorting plays an important and positive market role in price discovery

The only people that believe this are those who are in on the scam.

We really do not need blockchain to fix this.
The stock exchanges should have a robust database of who owns what stock and should update it on every trade. However, this is not the case, and it is designed that way.
The system is designed with corruption in mind. With backdoors for the in-group, and a tight drum for everyone else.

Because all these system are designed with corruption at its core, then we do need blockchain, or something as radically transparent.