That 'short report' is not what you think it is. It is simply shares that have been sold/bought that have not yet settled within the 3 day settling time. No one in their right mind would short a sub penny stock - putting up $2.50 per share to short JUST to make a couple hundred IF and ONLY IF the stock goes down. If it spikes up, it could clean out the reserve and leave the shorter broke.
Again, anyone that actually shorts stocks for a living would not dare to short sub penny stocks. WAAAAAY too much risk for almost no gain.