to short a penny stock you are required to have $2.50 margin per every 1 share short.
so if 1,600,000 shares were sold short it would require a trader to have $4,000,000 to secure that short position.
my point is, people are not shorting a sub-penny stock; i think that otcshortreport.com system is mistakenly tracking sell volume as 'short-sale' volume.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.