Xfuels Inc (XFLS)

[Huggy Bear]

The OTC short report does not reflect short selling interest.

Difference between short "volume" & "interest" (simplified version)

Short Interest: The number of shares borrowed and sold "short", with the hope of buying back at a lower price. Not yet covered, ie, "Open" "interest" or "positions". FINRA reports this twice per month here: http://otce.finra.org/ESI which shows 5,239 short interest most recently. $85 worth
(but no doubt, there's a "squeeze" coming LOL)

Short Volume: Intraday volume Market Makers transactions when they temporarily short a stock for a couple of seconds or a minute to fill an order in a timely manner, then cover a couple minutes later (otcshortreport)

Example: 1,000,000 buy order comes in. MM doesn't have 1,000,000 handy to fill the order, so quickly shorts 1,000,000, fills the order for the customer rather than keep them waiting. Then after taking a sip of coffee, covers the temporary short.

Now, lets say that happens 10 times today, for a total of 10,000,000 shares, short "Volume" is 10,000,000, but at EOD, it doesn't result in any short "positions" because they were all covered right away.

The next day, someone sees the 10,000,000 short "volume" and starts screaming about 10 MILLION SHORTS YESTERDAY .....

Using otcshortreport numbers is like going to the bank,
depositing $100, withdrawing $100, depositing $100, withdrawing $100..... repeating 10 times, then saying "I deposited $1000 in the bank today", when the account is actually $0

For bonus LOLZ, there's the "off-shore naked short sellers". They get the blame when all else fails.