Yes, those daily short numbers don't mean anything down in the penny markets. You'll sometimes notice that when you try to buy a penny stock at the ask it'll either fill immediately or it will actually take a few minutes to fill even if you are buying on the ask. Often times when you are filled immediately, the market maker is temporarily shorting the stock to you and then sourcing the stock from a seller to meet the obligations. Because they shorted to you (for even a split second) it'll pop up on that report.
The report that comes out every 2 weeks I believe is the REGSHO which was put in place to combat naked shorting. If a stock pops up on that list it's b/c a broker or market maker shorted without delivering the stock on the transaction.
Also when a stock is down to .0001 it can't go any lower, seeing that shorts can only make money if the stock continues to slide there's no reason to be short this stock. Additionally, in order to short a stock, a broker must be willing to loan shares to you. No broker in their right mind would ever loan a stock at .0001 x .0002 to be available to short. The risk to the client and broker would be beyond comprehension. Imagine, you short $1k of stock at .0001, it then has news that Hillary is running for Prez, it goes to .002, all of a sudden you have to cover the 19k loss on that 1k short (a form of margin call). If you can't pay up, the broker has to suffer the loss and lawyers get involved for bankruptcy bla bla bla.
Only way to make money on a short from here is if the company does a Reverse Split. But betting on that to happen before a possible run up in price would be extremely risky.
Hope this helps!
Pred
