This is correct. Of all the states, CA has the largest number of qualified applicants, and as such, it's the biggest net exporter of medical students. UCLA grads alone could fill every MD school seat in the state.
Your best chances to stay in CA are as follows: Western, Touro-CA, Loma Linda (but look at their list of don'ts), UCR (IF you're from the Inland Empire) UCD, UCI, UCR, and then lastly, the titans of Keck, UCSD, UCLA, UCSF and Stanford.
Under no circumstances can I recommend CNU.
What do you do to increase your chances? Evidence of commitment to community, research, and academic excellence.