You know, those little shrimp (or is it shrimps) that you make shrimp salad with…how are they peeled? They’re so little!
Ever look at the fingers on a baby? They’re little, too. A perfect match! 
These guys have a machine that they say can peel any size shrimp. Though I kind of doubt they would use it for baby shrimp.
I seem to recall a history show about Chinese shrimpers in old California. They cooked the shrimp and used a device that was able to shake the peels off the shrimp. I have no idea how exactly it was done, but I remember that it seemed really cool at the time.
I have absolutely no idea, but if I had to take a guess, I’d say there’s some kind of solution that they dip the shrimp in that dissolves the shell.
But that’s just a guess.
Shrimp packers in Ecuador, when I was working there twentyfive years ago, used a large machine involving a stainless steel revolving shaft with a lot of little needles protruding maybe 1/8". The shrimp were delivered by a moving belt to a tray whose height, therefor distance to the needles, was adjustable according to the size of the shrimp. The needles cut the shells into little pieces, which then were washed out by a high pressure water spray. Seemed to work for everything from U12 giants to little bitty U100 called pacotillos (U = tails per pound).
I fear that I will never get that word out of my head.
I was misremembering. There were two shafts with needles, and the distance between the shafts was adjustable for the size of shrimp.
Now that’s a good answer…thanks!